Public belief that a university education is not worth the time and money has nearly tripled in two decades, according to the latest British Social Attitudes (BSA) survey, which found that 34% of people now hold that view – up from just 14% in 2005.
The poll, conducted by the National Centre for Social Research between August and October 2025 among 4,656 individuals across the UK, also recorded a sharp decline in the number of people who think graduates end up a lot better off financially than non-graduates: down from 50% in 2005 to 36% in 2025.
The shift in public sentiment comes as the higher education sector reels from decades of expansion. In 1983, when the BSA survey began, only about 6% of school leavers went to university. By 2025 that figure had ballooned to 36%, with more than two million domestic students enrolled. In the 1960s, participation was as low as 3-4% of a cohort; even by 1990 it had only reached 19.3%.
But the expansion has been accompanied by a dramatic rise in the cost of attending university. Tuition fees were introduced in 1998 at £1,000 a year, initially means-tested. The cap rose to £3,000 in 2006, then to £9,000 in England in 2012. For the 2025-26 academic year, English students now pay up to £9,535 a year – the first increase since 2017 – on top of living costs. Maintenance grants were replaced by loans from the 2016-17 academic year.
The result is a generation of graduates carrying unprecedented levels of debt. The average debt for UK graduates finishing their course in 2024 stood at £53,000. Outstanding student loans in England reached £267 billion by March 2025, with government forecasts predicting that figure will rise to around £500 billion by the late 2040s.
Debt and repayments: a broken system?
The burden of that debt is compounded by the way loans are managed. Student loan repayment thresholds – the salary level at which graduates begin paying back their loans – have been frozen repeatedly, rather than rising in line with inflation as originally promised. The threshold for Plan 2 loans was frozen at £27,295 for three years from early 2022, and indexation shifted from average earnings to the Retail Prices Index. A further freeze is scheduled from 2027 for three years. For Plan 4 loans (covering Scotland and EU students), the threshold for 2026-27 is £33,795.
Interest rates on these loans have also fuelled disquiet. The maximum rate on Plan 2 loans (for those who began study after 2012) is currently 6.2% as of December 2025. The government forecasts that only around 56% of full-time undergraduates starting in 2024-25 will repay their loans in full – a significant increase from the 32% forecast for the 2022-23 cohort, but still meaning that nearly half of borrowers will never clear their debt.
Beyond official student loans, students and graduates owe nearly £500 million in what are described as “hidden debts” to universities – including library fines, unpaid accommodation and support loans – averaging about £2,650 each.
For many, the financial strain is immediate. Alex Stanley, vice-president for higher education at the National Union of Students, said he had to work three jobs alongside his studies, and that his grades suffered as a result. Despite not being able to live on the loans he received, he still has more than £50,000 of debt “which is growing each month despite my repayments”. Stanley, who is glad he went to university because of the experiences gained beyond the certificate, added: “The funding system is broken, and that is decaying trust in the university model.”
The BSA survey bears this out: younger graduates, who have direct experience of the fee system, are measurably more disillusioned than older graduates who paid no fees.
Shrinking graduate premium and labour market pressures
The financial returns from a degree have also weakened. In 1999, the average UK graduate earned 80% more than non-graduates; by 2022 that premium had fallen to 45%, even before accounting for student loan repayments. A Bloomberg analysis indicates the graduate pay premium over minimum wage workers in England has halved since 2007.
Underemployment is rising. The earnings premium for a lower second-class degree has plummeted from 14% for those born in 1970 to just 3% for those born in 1990. Meanwhile, 700,000 degree holders are now unemployed and claiming benefits – an increase of 200,000 since 2019.
The survey also found that 42% of the public, and 49% of those with degrees, believe there are too many recent graduates for the jobs available. Some politicians, including the Conservatives and Reform UK, have called for a reduction in student numbers and a greater focus on vocational training. However, the BSA data indicates that most people still believe opportunities to attend university should either expand or remain constant.
Another factor feeding public doubt is the impact of artificial intelligence on the graduate jobs market. Roles involving repetitive tasks, such as administration or data entry, are considered most at risk. Some employers are hiring graduates directly into more advanced roles, bypassing traditional entry-level positions, while others are redesigning junior roles to focus on creativity and strategy. AI is seen as more likely to transform jobs than remove them entirely, but the anxiety has filtered through to the public.
Expert voices: what the sector says
Vivienne Stern, chief executive of Universities UK, acknowledged the difficult labour market but stressed the enduring advantages of a degree. “There’s no getting away from the fact that it’s a challenging labour market out there for everyone seeking work, not just graduates, which is a reflection of the current economy,” she said. “But the data consistently shows that those with a degree are more likely to have a job, earn more and have better health. And a university education doesn’t just benefit the individual. If we want our country to grow, we need more graduates entering the labour market.”
Nick Hillman, director of the Higher Education Policy Institute, agreed that university still benefits most graduates most of the time, but added: “The lack of substantial economic growth means the rewards are not always as great as people hope beforehand. However, despite years of negative rhetoric, it is still only one in three people who think university is not worth it.”
Alex Scholes, a co-author of the BSA report, warned that universities are not just educational institutions but also engines of social mobility and economic growth – and that they are under immense financial pressure. Nearly half of all universities are anticipating budget deficits in 2025-26, leading to course consolidations and closures. “It appears recent debates about the fairness of student loan repayment systems and the role of AI on the job market have filtered through to people’s views about the value of a degree,” Scholes said. “If public confidence continues to fall, we risk seeing the financial situation become even worse.”
Regional disparities in the graduate premium add another layer: the premium has fallen by 20% in the North East while remaining more consistent in London. The majority of the English public supports a cap on the number of international students universities can enrol, further squeezing a key revenue source for many institutions.
Alex Stanley of the NUS called for a fundamental rethink: “We want a university system where young people can go, spend three years expanding their horizons, deepening their knowledge and challenging their thinking, and then leave with a qualification that sets them up for the workplace. But right now, that is not the case. This should serve as a wake-up call for universities and for the government.”
