University education has long been seen as a key to unlocking future prospects, but rising costs are casting a shadow over this age-old assumption. New research reveals a surprising trend: despite increasing fees and living expenses, four in ten students believe their courses offer 'good' or 'very good' value for money – the highest proportion in over a decade.
Tuition fees in England and Wales have been fixed at £9,250 since 2017, but universities warn that inflation is eroding the real-terms value of these fees. This has led to concerns over funding pressures, with some institutions citing a shortfall in international student numbers as a major issue. As a result, it's expected that tuition fees will increase annually, tied to the Retail Price Index minus mortgage payment interest (RPIx). Meanwhile, Northern Irish students pay a maximum of £4,855 per year, rising to £4,985 in 2026-27, while other UK students face £9,535, increasing to £9,790.
But it's not just tuition fees that are causing financial headaches. Living costs present another substantial challenge for students, with the maximum maintenance loan set to rise to £10,830 for English students living away from home outside London in 2026-27. According to Hepi, a student needs around £61,000 over three years to achieve a 'minimum socially acceptable standard of living', excluding tuition fees – a figure that jumps to £77,000 in London. This has led to more students taking on paid work during term time, with 65% of full-time undergraduates now working compared to 45% in 2022.
The repayment structure for student loans also varies across the UK. Changes introduced in England in 2023 mean current and future students are likely to repay more over a longer period compared to previous cohorts. Interest starts accruing from the day the loan is taken out, with repayments commencing once annual income reaches a specified threshold. To alleviate some of the financial pressure, Wales and Northern Ireland offer non-repayable maintenance grants to eligible students. England will reintroduce maintenance grants of up to £1,000 per year from 2028 for lower-income households on courses aligned with its Industrial Strategy – although the list of eligible courses is still being finalised.
Ultimately, whether a university degree remains worth the investment is a highly personal decision, influenced by individual aspirations and career goals. While the financial burden is significant and growing, the latest data suggests that many students are still confident in the value their courses provide – indicating that for some, the benefits outweigh the costs.