Domesday Live

Is going to university still worth it?

On average, graduates still earn more over their working lives than people without a degree, but the gap varies hugely by subject and university, and some graduates earn no more than they would have without one. In England most students leave with a large loan, though it is repaid as a share of earnings above a threshold, more like a tax than a normal debt, and any balance left is eventually written off.

Why it happens

• Graduates earn more on average. Studies by bodies such as the Institute for Fiscal Studies find a clear pay gain for most graduates, even after tax and loan repayments. It depends a great deal on the subject and the university, and for some courses the gain is small or none.
• Fees and loans. Home students in England pay more than £9,000 a year in fees, paid for by loans, and borrow more for living costs. Repayments are 9% of earnings above a threshold, so high earners repay most of the loan while many others never repay it in full.
• A degree stands out less. A large share of young people now go to university, so a degree is less of a signal to employers than it was, and some graduates end up in jobs that do not need one.
• Other routes can pay well. Apprenticeships and technical qualifications lead to well-paid work in many trades and fields, often without debt, and the government has been trying to make them easier to choose.
• It depends where you live. Scotland does not charge tuition fees to Scottish students, and fees and support differ in Wales and Northern Ireland, so the same course can cost very different amounts.