Are Tuition Fees Really Helping Students?

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What does any tuition fee increase mean for young people’s futures?

The latest rise in tuition fees to £9,535 – an increase of £285 – has sparked concerns about affordability and the long-term impact on students.

The Government has announced that from 2025/26, undergraduate tuition fees in England will rise to £9,535 per year. This increase comes with a higher maintenance loan cap to help with rising living costs, but also places more debt on young people entering the workforce.

The changes could impact students’ decisions to pursue higher education, especially those from low-income backgrounds.

While this fee increase is intended to help universities cover growing costs, school and college leaders must prepare to support students in understanding the implications. I’ve taken a closer look at a recent publication by the House of Commons: Higher Education Student Numbers (October, 2024).

Eight statistical headlines

1. There are ~2.94 million students attend UK higher education (1.7M undergraduates)
2. 2.1M are from the UK  
3. 120,000 are from the EU / 550,000 are non-EU
4. Approximately 37,000 are disadvantaged, with 19% free school meals
5. More females enter higher education
6. London brings in the greatest pool of undergraduates
7. There is work to do in the North East and South West to improve uptake
8. White British students are under-represented.

University entry rates (pre and post-2017) among UK students, particularly among 18-year-olds, initially remained strong. Entry rates actually rose, peaking at 38.2% in 2021. This suggests that, while cost is a factor, the perceived value of a degree remains high.

Here’s a breakdown of what’s happening, why it matters, and what teachers can do to support 16 to 18-year-olds.

The first increase since 2017

This increase in tuition fees, alongside a rise in maintenance loans, is the first adjustment since 2017. Students from 2025 onwards will face higher annual costs and will likely need to take on more debt to fund their studies. The maximum maintenance loan will rise to £10,544 outside London and £13,762 within London, indexed to inflation.

Despite the fee rise, experts argue it’s not enough to cover university operating costs, with some saying fees should be closer to £12,500. In response, the government has pledged broader funding reforms to ensure universities remain financially viable, but all increases will only add to an already hefty debt burden.

Financial pressure on universities

How do we maintain some of the best universities in the world?

Tuition fees are rising due to financial pressure on universities – nearly 40% report deficits in 2024. A freeze since 2017 means fees haven’t kept pace with inflation, creating a funding gap that impacts teaching quality and student services. By linking fees and loans to inflation, the government hopes to stabilise university finances and keep higher education accessible.

For students, however, this change means more borrowing and larger debts upon graduation. While higher maintenance loans might ease daily living costs, many argue it’s only a “sticking plaster” on a bigger affordability issue. As debt levels climb, this could deter prospective students, especially those from disadvantaged backgrounds or without family financial support.

What is the solution?

We know university is not for everyone, nor does it guarantee any career.

Teachers, as ever, play a crucial role in preparing students to navigate higher education challenges. Currently, schools provide students with ‘some’ financial literacy – from budgeting, loan repayments, and interest rates. Focused curriculum experiences provide students with mock budgeting exercises that simulate real-world problems, from rent and utilities to groceries and transportation; showing students how to manage a maintenance loan budget may alleviate some financial stress.

Schools also build partnerships with local universities to provide seminars on potential courses, funding, scholarships, and budgeting advice, especially for students from low-income backgrounds. School and college leaders can ensure students are well-informed and prepared for the financial responsibilities of higher education. However, the headache remains.

Is it worth attending university and graduating with £30K+ debt?!

Reflection questions to consider

1. How can teachers prepare students for the realities of student debt?
2. Should financial literacy be a standard part of the curriculum?
3. How might rising tuition fees impact students’ decisions to pursue higher education?
4. Could mock budgeting activities help students better understand living on a loan?
5. What can teachers do to encourage students from low-income families to pursue higher education?
6. How could partnerships with universities benefit students in navigating student finance?
7. What impact might debt have on students’ career choices post-graduation?
8. How do we encourage more White British students to enter higher education?
9. How do we improve uptake in the South West and North East if debt outweighs possible (regional) income?
10. In what ways can schools support students considering alternative education or career paths?

The House of Commons briefing paper concludes:

… the repayment term of the student loan will be extended from 30 years to 40 years.

Imagine that? Forty years to pay off one of the earliest – and most important – decisions you will make in your life. Download and read the full paper; there are some very interesting details.

Meanwhile, over the border in Scotland …

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