Universities have contested the notion that an increase in tuition fees would automatically result in students paying back more money, describing such suggestions as “unhelpful and unrealistic”. This perspective was outlined in a submission by Ulster University (UU) to the Treasury Committee, which has been investigating the student loan system and previously accused the government of “mis-selling” certain student loans.
While the parliamentary inquiry primarily focuses on student loans for England and Wales, both Ulster University and Queen's University Belfast (QUB) provided written evidence. Their submissions highlight a “student debt myth,” arguing that public debate often concentrates on theoretical total debt rather than the actual repayment burden, which for many graduates is significantly lower. Ulster University's economic policy centre's modelling suggests that graduates earning middle incomes or below would face no additional payments if tuition fees were to rise.
Universities in Northern Ireland currently charge £4,985 per year in tuition fees for students studying within the region, a figure considerably lower than the £9,790 paid by students in England and Wales. Leaders of Northern Ireland's five universities and university colleges have previously called for these fees to increase by over £1,000 annually, pushing for a rise to almost £6,000 a year. However, Economy Minister Caoimhe Archibald has ruled out increasing tuition fees beyond the standard rate of inflation.
Both QUB and UU’s submissions to the Treasury Committee expressed significant concerns regarding the financial sustainability of universities. Ulster University, which recently announced plans to cut up to 450 jobs, stated that Northern Ireland’s universities are facing a “funding crisis” and that the current funding model for higher education is “no longer fit for purpose.” They emphasised the critical role universities play in the region’s economy and societal fabric.
The current student loan system in Northern Ireland requires graduates to begin repayments once they earn over £26,900 annually, with any outstanding balance cancelled after 25 years. Financial experts, including Martin Lewis, have frequently highlighted that a graduate's annual repayment is determined by their earnings, not the total amount borrowed, a point echoed by the universities in their submissions to MPs.