The student loan system in England is under scrutiny as an inquiry by the Treasury Select Committee gets underway. Concerns over the value of a university education are running high after a survey revealed that 34% of people believe a degree 'just isn't worth the amount of time and money', a significant increase from 14% in 2005.
The British Social Attitudes survey shows a stark shift in public opinion, with more people questioning the financial and time investment required for higher education. In 2025, just 36% of respondents believed going to university leaves graduates 'a lot better off' in the long run, down from 50% in 2005.
Graduates are set to share their frustrations over massive debts and high interest rates with the committee. Those who took out Plan 2 loans between 2012 and 2023 are particularly vulnerable, as they often see their debt increase despite making regular repayments. One graduate's story highlights the issue: her debt went from £34,105 in 2016 to £41,908 by 2020, leaving her feeling 'drained'.
The National Union of Students (NUS) is urging the inquiry to address concerns over graduate earnings repayment thresholds and interest rates. The government maintains its current system safeguards lower-earning graduates, but the NUS wants a review of the decision to freeze the repayment threshold at £29,385 from April 2027 for three years.
Sir Philip Augar, who chaired the 2019 post-18 education review in England, testified before the committee on Tuesday. He believes a 'correction' is needed for Plan 2 loans and suggested that incremental changes across different administrations have led to the current situation. Universities UK Chief Executive Vivienne Stern MBE countered by highlighting the broader benefits of a university-educated workforce, including better job prospects, higher earnings, and improved health outcomes.