A Treasury-ordered inquiry into student loan affordability has been launched amid growing public disillusionment with higher education. Data published today by the Office for National Statistics reveals that 34% of British adults now believe a university degree is not worth the financial outlay, a figure that rises to 47% among those aged 25 to 34.
The review, commissioned by the Chancellor, will examine whether the current system of tuition fees and income-contingent loans delivers value for both students and taxpayers. It comes as total student loan debt in England exceeds £220 billion, with the Resolution Foundation projecting that 80% of graduates will never fully repay their loans.
Critics of the existing model argue that the expansion of university participation has not been matched by a commensurate increase in graduate wages, particularly outside London and the South East. The median salary for a 30-year-old non-graduate is now £28,000 against £32,000 for a graduate, a gap that has narrowed by a fifth over the past decade.
The Department for Education confirmed that the review will consider alternative funding mechanisms, including a graduate tax and reforms to interest rates on loans. A spokesperson said: 'We must ensure that the system is fair, sustainable, and that students are equipped for the jobs of the future.'
Education campaigners welcomed the inquiry but urged ministers to look beyond finance. 'The problem is not just cost but relevance,' said Dr Emma Sinclair of the Higher Education Policy Institute. 'Too many courses offer poor returns. We need a better link between university output and labour market needs.'
Vice-chancellors have pushed back against the narrative, arguing that degrees remain a strong investment over a lifetime and that the data do not capture non-financial benefits such as social mobility and personal development. 'A degree opens doors that would otherwise remain closed,' said Professor James Cartwright of the Russell Group. 'But we accept the system must evolve.'
The Treasury is expected to report back by the autumn. The findings could lead to significant changes in student finance, including caps on fee increases or write-off periods for debt.
For now, the numbers paint a stark picture. With one in three Britons now questioning the value of a degree, and a generation saddled with unprecedented debt, the pressure on policymakers to deliver reform has never been greater.
