After school · 5 min read
Is university worth it?
Whether university is worth it in England in 2026: £9,790 fees, Plan 5 loans, the graduate premium in DfE and IFS data, who gains least, and how to decide.
The short answer
On average, yes, and the average hides a wide spread. In 2024 working-age graduates in England earned a median £42,000 against £30,500 for non-graduates, and the IFS puts the lifetime net gain at roughly £100,000 to £130,000 for a typical graduate after tax and loan repayments. But about a fifth of students gain little or nothing financially, mostly on certain courses at certain universities. Fees are £9,790 a year from 2026/27. Decide by subject, institution and what you'd do instead.
Key takeaways
- Graduates had an 87.6% employment rate and a £42,000 median salary in 2024, against 68.0% and £30,500 for non-graduates (DfE).
- IFS: lifetime returns after tax and loans average around £130,000 for men and £100,000 for women, with about a fifth gaining nothing.
- Fees are £9,790 in 2026/27 and £10,050 in 2027/28; Plan 5 loans are repaid at 9% of income over £25,000 for up to 40 years.
- The return depends far more on subject and institution than on going at all, so compare the specific course with the specific alternative.
On this pageWhat the data says, in one table
What the data says, in one table
| Measure | Graduates | Postgraduates | Non-graduates |
|---|---|---|---|
| Employment rate (16-64) | 87.6% | 90.0% | 68.0% |
| High-skilled employment | 67.9% | 79.0% | 23.7% |
| Median salary | £42,000 | £47,000 | £30,500 |
| Unemployment rate | 5.5% | 3.5% | 8.1% |
Those are averages across all ages, and they flatter the recent graduate: the gap is small at 22 and widens through the thirties. The IFS, using tax records, estimates the average net lifetime gain at around £130,000 for men and £100,000 for women after tax and loan repayments, with roughly a fifth of students expected to be no better off financially for having gone.
What it costs
- Fees: £9,790 a year in 2026/27, £10,050 in 2027/28, then rising with inflation. Paid by a tuition fee loan you never see.
- Living: a maintenance loan of up to about £10,500 outside London, more in London, depending on household income. Most students also work or get family help.
- Repayment: 9% of everything you earn over £25,000 a year on Plan 5, for up to 40 years. On £30,000 that's £450 a year.
- Opportunity: three years of earnings, roughly £55,000 to £70,000 at apprentice or entry-level pay, which is the real cost.
The question that matters: worth it compared to what?
University is worth it compared with doing nothing in particular. It's a closer call compared with a degree apprenticeship in the same field, a Level 4 qualification while working, or three years in a trade. Large employers cut graduate hiring by 8% in 2025 while increasing apprentice hiring by 8%, and the median graduate starting salary at those employers was £33,000. Name the alternative before you judge the degree.
How to decide for your case
- Look up the specific course's graduate outcomes on Discover Uni: earnings and employment five years out, not the university's average.
- Check whether the job you have in mind requires a degree, prefers one or doesn't care. Nursing, medicine and teaching require; much of business and digital doesn't.
- Price the alternative honestly: what would you earn and learn in those three years instead?
- Spend a day near the work the degree leads to before you spend three years preparing for it.
Illustrative example: two sensible decisions
One 18 year old wants to be a physiotherapist, which requires a degree, so she goes and the question of worth answers itself. Another is interested in marketing, doesn't love studying, and has a Level 3 apprenticeship offer at an agency; he takes it, keeps the university offer until results day, and plans a part-time Level 6 later if the work wants it. Both decided by comparing real options.
Questions people ask
- How much does university cost in England in 2026?
- Tuition is £9,790 a year for 2026/27 and £10,050 for 2027/28, covered by a tuition fee loan. Living costs are covered partly by a maintenance loan that depends on household income and where you study. A three-year degree typically leaves £45,000 to £60,000 of Plan 5 debt, repaid at 9% of earnings above £25,000 and written off after 40 years.
- Do graduates really earn more?
- On average, yes. DfE's 2024 figures give a median of £42,000 for working-age graduates against £30,500 for non-graduates, and 67.9% of graduates in high-skilled work against 23.7%. The gap is smaller for recent graduates and varies hugely by subject: medicine, economics and law pay most; creative arts and some social sciences least.
- Which degrees aren't worth it financially?
- The IFS found net lifetime returns close to zero on average for women studying creative arts and languages, and negative for some men on lower-return courses, especially those with lower prior grades. That's a financial measure only. A degree that leads to work you'd choose anyway can still be the right call; just go in knowing the number.
- Is a degree apprenticeship better than university?
- For some people and some fields. You get the same degree, a salary and no fees, but only in fields where employers run them, with fierce competition and a working week instead of a student one. If the degree you want exists as an apprenticeship and you'd enjoy the workplace, apply for both and decide with offers in hand.
Exercises are practice, not evidence of career fit or a qualification. How to read our guides and report a correction.
Sources
- Graduate labour market statistics, calendar year 2024 · Department for Education, Explore education statistics
- The impact of undergraduate degrees on lifetime earnings (2020) · Institute for Fiscal Studies, for the Department for Education
- Changes to tuition fees: 2026 to 2027 and 2027 to 2028 academic years · Department for Education, GOV.UK
- Student Recruitment Survey 2025 · Institute of Student Employers
How this page is written
Sources support the factual background, not a guarantee that an exercise predicts career fit. Fictional practice material is labelled. Dates record content updates; no independent expert review is implied. More about OffLadder.