Third of people say uni degree not worth it, as student loan inquiry begins

A parliamentary inquiry into England's student loan system begins as new research shows a third of people now believe a university degree is not worth the time and money [1]. The British Social Attitudes survey found 34% of people in 2025 agreed a university education 'just isn't worth the amount of time and money', a significant increase from 14% in 2005 [1]. This growing public scepticism coincides with the Treasury Select Committee's inquiry, which will hear from student groups and graduates concerned about debt size and interest rates [1]. The National Union of Students (NUS) is urging the committee to examine the graduate earnings repayment threshold and interest rates [1]. Graduates in England repay 9% of earnings over a threshold, which is set to be frozen at £29,385 from April 2027 for three years [1]. The government defends the current system, stating it protects lower-earning graduates by linking repayments to earnings and writing off loans after their term [1]. Graduates who took out Plan 2 loans between 2012 and 2023 are among the most affected [1]. One graduate, Gemma, saw her initial debt of £34,105 in 2016 grow to £41,908 due to interest accumulation outpacing her repayments [1]. She described the experience as 'constantly chasing a debt that gets bigger over time; it feels like climbing a mountain' [1]. The representative body for UK higher education providers, Universities UK, argues that graduates are more likely to be employed and earn more, benefiting both the individual and the country's economic growth [1][2]. UK universities are generally instituted by royal charter or acts of parliament, with degree-awarding powers protected by law [2]. The undergraduate application process for these institutions is managed by the Universities and Colleges Admissions Service (UCAS) [2]. The current debate over the loan system's value occurs within this established framework, where the financial burden on students has become a central political issue. The government has capped the interest rate on Plan 2 loans at 6% and stated it has raised the repayment threshold since 2021 [1].