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Business
Jun 25, 2026
Analyzed by Llama- 4 Scout 17B 16E Instruct

One in four UK graduates financially worse off after university, IFS estimates

AI Summary
A quarter of UK graduates can expect to be financially worse off after going to university, especially those who take creative or performing arts degrees, according to new estimates by the Institute for Fiscal Studies.

The Financial Impact of University Education

A quarter of UK graduates can expect to be financially worse off after going to university, especially those who take creative or performing arts degrees, according to new estimates by the Institute for Fiscal Studies.

Graduate Pay and Student Loans

The research is based on the pay of students who graduated in the teeth of the global financial crisis in 2008. While the IFS projects that the majority will be £100,000 better off in lifetime pay thanks to their degree, about 25% might have done better without entering higher education once their likely pay, student loans and taxes are added up.

The Data Analysis

  • 25% of graduates might end up worse off than they otherwise would have been
  • 40% of men with low prior attainment end up worse off
  • The graduate premium – the gap between graduate and non-graduate pay – has shrunk by 30%

The Impact Analysis

Controversy has risen around university funding and student loans in England after the government increased the amount that future students will repay. The government has outlined plans to draw up options for legislation to cap student numbers for courses with poor outcomes.

The Prediction

Natan Ornadel, a research economist at the IFS, said: “But this does not mean that everyone who goes to university will be financially better off as a result: we estimate around a quarter of graduates – and 40% of men with low prior attainment – end up worse off than they otherwise would have been.”