The government allowed universities in the UK to charge up to £9,000 per year in tuition fees in 2012. This replaced direct government grants to universities. Many institutions increased their fees to the maximum amount. Students take out government-backed loans to cover fees and living costs, and start repaying the loans once they earn over £21,000 per year at an interest rate up to 3% above inflation. If the debt is not fully repaid within 30 years, the remaining amount is written off. However, about three quarters of graduates will still have some debt remaining after 30 years of repayments. While the figures seem large, most students feel the long-term benefits of a university degree are worth the costs.

1. University Story Research
The government allowed universities to charge £9,000 a year for tuition.
The coalition changed the way higher education is funded in 2012. Instead of giving
money directly to universities in the form of a teaching grant, the government allowed
them to charge students more for tuition.
Many institutions trebled their tuition fees, charging students the maximum of £9,000
a year. Instead of paying the money upfront, students take out a loan government-
backed loan to cover the fees and their living costs.
You start paying the money back once you earn more than £21,000. You pay 9 per
cent of earnings above the threshold (which will rise in line with average earnings), at
an interest rate of up to 3 per cent above inflation.
If you haven’t paid back the full amount after 30 years, the government writes it off.
But what kind of loser will still be paying off their student debt at the age of 51?
Err… about three quarters of graduates (73 per cent) will have some outstanding
debt written off after 30 years of work, according to the IFS.
That raises the question of whether it actually pays to get a degree in the first place.
At first glance, the IFS figures are terrifying. The average graduate will now leave
university with £44,035 of debt, compared to £24,754 under the old system.
Only 5 per cent of graduates will have paid back everything they borrowed by the
age of 40.
In cash terms the average graduates will have to repay a total of £66,897, as
opposed to £32,917 under the old system.
Is university worth it? It seems only few would choose not to go again. A fraction (1.6
per cent) expressed dissatisfaction with every aspect of their first year and most
have high hopes for the rest of their course and the long-term benefits their degree
will grant them.
The message to universities is clear: sharpen the courses, increase teaching
standards and offer more support. The increased costs have prised university away
from its long-standing position as "the next step" for bright pupils – it is now no more
than one choice of many.
The survey also touched on another, intangible element. Though the questions
centred on value for money, teaching, accommodation and the likelihood of
recommending university, a fifth of comments mentioned the university ‘experience’
as part-justification for the cost.

2. University, it seems, matters not just for the numbers stamped on a certificate, but
the way one grows up to get them. Some things never change...