According to the OECD, England has the most expensive publicly-funded university system in the world. Despite this, the ‘graduate dividend’ for English students – the additional lifetime earnings they can expect – is relatively small. A degree in the UK leads to extra earnings of £153k for men and £140k for women – less than the international average of £209k and below the likes of France, Germany and Ireland (where tuition is free). While college debt in the US is far higher, graduates can expect an equally massive shift in projected earnings: a typical male graduate in the US will earn £426k more over his career, while a woman will earn an extra £308k.
While hardly an advert for English universities, this nevertheless suggests that studying for a degree in England (fees, grants and student finance differs across the home nations) is worthwhile. On graduation, the average English student now has a student debt of around £45k. While interest means that quickly rises, fewer than 20% of graduates are forecast to fully repay their loans. If you fall into this category, you will have earned significantly more than if you chose not to enter higher education at all.
Now, however, just as in 2010, the government is reforming the student loan system. What do prospective changes from 2023 mean, and are they likely to undermine the economic value of going to university?
Making sense of UK student finance.
As with tuition fees, the terms of one’s…
