A NEW survey showing a third of people do not believe a university degree is worth it is “not surprising”, experts warn.
An inquiry into England’s student loan system has been launched by MPs, with evidence being gathered from student groups, academics and financial experts.
The National Union of Students (NUS) has called for the review to examine graduate repayment thresholds and the interest charged on student loans.
The government has defended the current system, arguing that repayments are linked to earnings, protecting lower-paid graduates, while outstanding balances are eventually written off after a set period.
The inquiry comes as new research suggests public confidence in the value of a university degree is continuing to decline.
Findings from the latest British Social Attitudes survey show that 34% of people now believe a university education is not worth the time and financial commitment required, up from just 14% two decades ago.
It found that this represents the highest level of scepticism about the value of a degree since records began.
The proportion of people who believe university leaves graduates financially better off in the long run has also fallen significantly, dropping from 50% in 2005 to 36% in 2025.
A degree can no longer be viewed as the only route
Lukas Kaminskis, CEO of Turing College, said the figures show people are worried about the cost of university and the subsequent debt.
He added: “Falling confidence in the value of a degree shouldn’t be interpreted as a rejection of higher education itself. What it reflects is growing concern about cost, debt and whether you should be studying for a passion or to keep pace with the realities of the jobs market.
“People are increasingly asking not just ‘should I study?’, or ‘what should I study?’, but also ‘what skills will actually help me build a successful career?’.
“A degree remains a valuable route for many people, but it can no longer be viewed as the only route. Employers are placing greater emphasis on practical skills, adaptability and continuous learning.
“As industries evolve more quickly and adapt to new developments in technology, workers are recognising that education is not a one-off investment made at 18, but something that continues throughout a career.
“The challenge for education providers is to demonstrate clear outcomes and help people develop skills that are genuinely in demand. If students are studying to expand on their passions and interests, universities should be demonstrating that there is a material benefit to this once they’ve their studies.
“The conversation should move away from degrees versus non-degrees and focus instead on how we equip people with the knowledge and capabilities needed to thrive in a changing economy.”
Aaron Strutt, Product and Communications Director at London-based Trinity Financial, said it would be more beneficial to gain industry-specific qualifications rather than go to university.
He added: “The level of debt most students take on when they go to university or study for a degree is huge, and it follows them around for decades. In the mortgage and finance industries, many qualified advisers do not have a degree but hold industry-specific qualifications.
“There are also lots of apprentices learning their trade and going on to have successful careers. As a country, we clearly need educated people in specialist roles, but at the moment, many of them have to accumulate huge debts and then pay high interest rates.
“This debt is also taken into consideration for mortgage affordability purposes, meaning the amount graduates can borrow when they buy a home is reduced. It is not surprising younger people are being put off going into higher education.”
Students are being asked to take on huge debt
Nouran Moustafa, Practice Principal & IFA at Roxton Wealth, said degrees are not a “golden ticket”.
She added: “University is still worth it for some people, but the days of pretending every degree is automatically a golden ticket are over. A degree has to be judged like any major financial decision: cost, career route, earning potential, personal ambition and the alternatives available. I am not surprised confidence has fallen.
“Students are being asked to take on huge debt while the graduate job market feels more uncertain, rents are high, and many entry-level roles no longer give the same clear progression. The inquiry is needed, but it must be honest. The student loan system is called a loan, behaves partly like a graduate tax, and is explained badly to young people making one of the biggest decisions of their lives.
“We need better financial education before university, stronger vocational routes, clearer data on graduate outcomes by course, and a system that does not punish ambition. The question should not be ‘uni or no uni?’, it should be ‘which route gives this young person the best future’.”
Martin Rayner, Mortgage broker and financial adviser at Compton Financial Services, said university shouldn’t be the “default option”.
He added: “It is no surprise that more people are questioning whether university is worth the cost. Yesterday we advised two first-time buyers. One had an £81,000 student loan and the other £40,000. These loans will never be repaid. That helps no-one. The problem is that we have spent years treating university as the default option.
“For some careers a degree is absolutely worth it and remains the best route into a well-paid profession. For others, the financial return is far less clear and alternative routes such as apprenticeships may make more sense. Young people need honest information before taking on decades of repayments.
“An inquiry is needed because we have graduate unemployment alongside major shortages of skilled tradespeople. We are encouraging more people into higher education while employers struggle to recruit in sectors where demand is highest. That raises important questions about whether the system is delivering value for students, taxpayers and the wider economy.”
For two decades, we sold young people one dream
Antonia Medlicott, Founder & MD at London-based Investing Insiders, said the inquiry into student loans is needed.
She added: “This inquiry is long overdue. The student loan system has been reformed repeatedly without anyone stepping back to ask the important question: Should every young person go to university in the first place? The conversation we are not having is about return on investment.
“A degree in a subject with poor graduate employment outcomes, funded by £50,000 or more of debt, is not a good financial decision. For too many students, it is an expensive way of delaying adulthood, and there are better, lower-cost options available. Apprenticeships need to be a genuine first option for many.
“And we should be talking about the value of work experience, including overseas voluntary work, which could help address the growing concern of the number of NEET youths in the UK. Kids need practical employment skills. Not an expensive degree in a subject that won’t result in a job. Of course, there will always be professions where a degree is necessary.”
Kate Underwood, Founder at Southampton-based Kate Underwood HR and Training, said people should start to learn on the job.
She added: “For two decades, we sold young people one dream: rack up debt, get a degree, win at life. A third now call it out, and small business owners have known the maths was off for years. As an HR professional and small business champion, here’s the truth from the shop floor: too many universities aren’t equipping students for the real world, yet some graduates walk in with an entitlement towards those who’ve been working and learning since they left school. That’s so wrong.
“People learn in different ways. University is right for certain professions – medicine, law, engineering – but learning on the job is right for others. We have to quit treating a degree as elite for every role and start making all pathways equal. Small firms are crying out for talent, yet we still funnel every bright kid towards a campus instead of an apprenticeship that pays from day one.
“That’s a skills gap we’re creating on purpose. An inquiry? Yes, but ask the real question: why do we value paper over people?”
The jobs market has quietly moved the goalposts
Colette Mason, AI Ethics Consultant at London-based Clever Clogs AI, said AI is changing how we perceive knowledge.
She added: “The jobs market has quietly moved the goalposts. Knowledge work was the pitch. AI is now eating knowledge work. Graduate schemes that existed five years ago are contracting. The analytical, administrative, and writing-adjacent roles that justified the debt are exactly where AI displacement is landing first.
“The faceless application process makes it worse. You used to be able to walk a CV in, read a room, make an impression. Now you submit into a void, get screened by software that was never told what a person actually looks like, and hear nothing. This is a structural signal that the labour market values speed and compliance over judgment and character. A degree used to buy you into the room. It no longer guarantees the room exists.
“An inquiry into loan mechanics while the underlying value proposition collapses is the institutional equivalent of polishing the furniture while the house burns. The money is better spent on a deposit on a home or your own tech stack for AI.”
Photo by Alex Shute on Unsplash.
