One in four university graduates in the United Kingdom is financially worse off over their lifetime as a result of attending university, according to a government-commissioned study that has reignited debate over the economic value of higher education.

A report by the Institute for Fiscal Studies (IFS) found that while a university degree increases lifetime earnings for most students, around 25 percent of graduates would have been better off financially had they not attended university once tuition fees and student loan repayments are taken into account.

The study also found that around 10 percent of male graduates face lifetime losses exceeding £90,000.

Wide variation in graduate earnings

Based on data from students who sat GCSE exams in 2002, the analysis found that university graduates earn on average 40 percent more over their lifetime compared with non-graduates. This is equivalent to about £320,000 in today’s prices.

However, researchers said a significant portion of this gap is explained by factors such as prior academic achievement and family background rather than university attendance alone.

After accounting for taxes and student loan repayments, the net lifetime financial gain from a degree falls to around £180,000, with graduates retaining roughly £100,000 in additional income.

Outcomes depend heavily on subject choice

The report highlighted significant differences depending on field of study. Medicine and economics graduates were found to earn more than £400,000 in additional lifetime income, while some subjects delivered far lower returns.

Graduates in performing arts were estimated to potentially lose around £60,000 over their lifetime.

Policy debate over higher education costs

The findings come amid ongoing political debate in the UK over rising student debt and the value of university education.

UK Skills Minister Jacqui Smith said university remains a “life-changing opportunity,” but added that “not all degrees are equal,” urging students to consider their choices carefully.

IFS economist Kate Ogden said the results could help young people make more informed decisions about whether to attend university, what to study and where to study.

Researchers also noted that future labour market changes, including advances in artificial intelligence, could further reshape the economic value of degrees.(ILKHA)