The proportion of people who believe a university degree is not worth the time and money has nearly tripled since 2005, according to the latest British Social Attitudes (BSA) survey. Just 14% of respondents held that view two decades ago; by 2025 the figure had climbed to 34%. The survey, conducted between August and October 2025, also reveals that younger graduates – those who have experienced the current fee system – are significantly more disillusioned than older graduates who did not pay tuition fees.
The collapse in confidence extends beyond the simple cost-benefit calculation. In 2005, half of the public believed graduates were financially better off than non-graduates; by 2025 that share had fallen to 36%. More broadly, 77% of people in England now say a degree does not represent good value for money, up from 51% in 2014, according to separate polling cited in the BSA data.
Why younger graduates are turning away
The growing disillusionment among younger cohorts is driven by a combination of mounting student debt, a tougher graduate labour market, and the rising cost of living. More than 2.8 million UK graduates now owe at least £50,000 in student loans, and over 150,000 people have debts exceeding £100,000 – a figure that rose by a third in the first six months of 2025 alone. One borrower currently owes £298,000. The average loan balance for graduates in England who finished their course in 2024-25 is £53,000, a 10% increase on the previous year.
Many graduates on the “Plan 2” repayment scheme – covering loans taken out between 2012 and 2023 – find that accruing interest outstrips their monthly repayments, meaning their total debt continues to grow even after they start earning. The government’s decision to freeze the income threshold for starting loan repayments until 2030 means graduates will pay more and earlier as their salaries rise with inflation. For those on Plan 2 loans earning over £50,270 a year, interest rates can reach 6% above RPI (Retail Price Index) plus 3%, effectively requiring an income of up to £65,000 before the principal begins to shrink.
Maintenance loans in England have not kept pace with the cost of living. They are now at their lowest real-terms value in seven years, and students from lower-income households have faced real-terms cuts to support since 2020-21. Tuition fee caps are also set to rise: the undergraduate fee cap is projected to reach £9,790 in 2026 and £10,050 in 2027. Universities, meanwhile, have become increasingly reliant on international student fees to stay afloat, with many operating at a deficit as government funding for higher education in England has been reduced.
The cost-of-living crisis has hit students hard. In 2023, 91% of university students said they were worried about it, and 49% reported financial difficulties. A survey by the National Union of Students found that 96% of students are cutting back on essentials, with some skipping meals, reducing rent payments, and even forgoing laundry or showers to save money. Three-quarters of students said they could not afford course materials without additional support, and 90% reported that financial worries were affecting their mental health. More than a third (37%) had considered dropping out of higher education for financial reasons, and 75% felt their studies had been impacted by the crisis.
The graduate premium and the job market
Although graduates on average still earn more than non-graduates – a median nominal salary of £42,000 in 2024 compared with £30,500 – the “graduate premium” has been shrinking. Government data does not control for prior attainment, and the gap narrows further when factors such as social background are taken into account. Graduates are nearly three times more likely to be in high-skilled employment than non-graduates (67.9% vs 23.7% in 2024), but subject choices matter enormously. Medicine, dentistry and veterinary science boast employment rates above 88%, while computer science and IT show lower rates.
Despite these advantages, the graduate job market has become more difficult. The government has signalled plans to limit student numbers on courses deemed “rip-off degrees” that fail to deliver good career outcomes. Meanwhile, debates about the role of artificial intelligence in the workplace are feeding public scepticism about the long-term value of a traditional degree. And the raw numbers are stark: 700,000 graduates were out of work and receiving benefits in early 2026, an increase of 200,000 since 2019.
Declining engagement and alternative routes
The financial pressures are also showing up in classroom behaviour. Undergraduate attendance rates have fallen sharply: in 2006, 63% of undergraduates attended all scheduled classes; by 2025 that figure had dropped to just under 48%. The average time missed by students has more than doubled, partly because of the availability of online lectures and the rising number of students working part-time to make ends meet. Financial concerns are now the primary driver of low “value for money” ratings among current students – more important even than tuition fee levels themselves.
Against this backdrop, interest in alternatives to a traditional three-year degree is growing. Apprenticeships, conversion courses, professional qualifications, online certifications, and further education (FE) are all seeing increased enrolments – particularly among adults over 30. Employers, especially small and medium-sized enterprises, are increasingly prioritising skills, experience and attitude over academic grades. The government’s focus on limiting “rip-off degrees” underscores the broader shift in public and policy discourse.
We would like to hear from graduates and current students about their views on going to university. As a graduate, do you feel your degree was worth it, financially or otherwise? Did you decide against going to university? If so, why? If you’re a student and are thinking about your options we’d like to hear from you too. If you’re having trouble using the form click here. Read terms of service here and privacy policy here.
