Third of people say uni degree not worth it, as student loan inquiry begins
Summary
A new investigation by UK MPs has started to look into the student loan system in England, amid growing concerns about its fairness. Recent research shows a third of people think a university degree is not worth the cost, while many graduates face rising debts that grow faster than their repayments.Key Facts
- The inquiry is led by the Treasury Select Committee of MPs in England.
- The National Union of Students wants the government to review repayment limits and interest rates on student loans.
- A survey found 34% of people in 2025 believe a university degree is not worth the time and money; this is more than double the percentage from 2005.
- Fewer people now think university leads to better financial outcomes, dropping from 50% in 2005 to 36% in 2025.
- Graduates with Plan 2 loans (taken 2012-2023) worry about growing debt due to high interest rates.
- One graduate’s debt increased from £34,105 in 2016 to £41,908 despite repayments.
- The repayment threshold (£29,385) is set to be frozen until 2030, meaning more borrowers will start repaying sooner.
- The government caps interest rates on these loans at 6% and argues the system protects lower earners and eventually writes off unpaid debt after 30 years.
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