Whether you’re looking to make your own way in the world, thinking about furthering your career prospects or changing your career entirely, then university might be one option you’re looking at. But is university really worth the cost?
The answer to that is quite complex. For example, some jobs like medicine, dentistry and engineering will require a degree., while others can be earned by experience.
Is university right for you?
The first thing you might want to look at is whether university is the right option for you. Some things to consider are: do you know what kind of job you want to have? Have you checked to see whether a degree is absolutely essential, or can you work your way up the ladder? What kind of salary would you likely be looking at when you come out of university?
All of these things can help you find the answer to that question, but only you are able to decide if it’s the right option for you.
How much does university cost?
We’ve detailed the real cost of university in another blog, but a three-year Bachelor’s degree could cost you £27,750 just in tuition fees depending on where in the UK you choose to study (for example, it would cost £27,000 in Wales and would be free for Scots studying in Scotland).1
If you’re looking at moving away, then your living costs are also likely to increase, meaning that it may be even more expensive to go to university.
However, student loans can help you pay for this and they aren’t considered to be a ‘bad’ form of debt. In fact, how much you’ll repay (including the amount of interest you’ll repay) depends on what you earn – you can find out more about how much you may need to repay on the government's website.
Is university value for money?
Value for money depends on who you’re talking to, as it’s always believed that going to university is an investment in your future allowing you to be a higher earner further down the line. And before you look at average salaries to plan your future, it’s worth thinking about it a bit tactically.
If you look at graduates and non-graduates in England between 2007 and 2021, those with a degree had an average salary of £36,000 – which is £10,000 higher than those without one.2
But this is a blanket statement, and there’s a whole heap of other factors that might also apply here.
For example, you need to consider the type of degree, the demand and popularity of the subject, the number of jobs in that field, how commercial or competitive the market is, and even the candidates themselves with their backgrounds, and locations around the UK.
Basically, having a degree doesn't automatically guarantee you'll be a high earner even if you go into a lucrative field. For example, if the average lawyer salary in the UK is currently £51,893 a year3 and some lawyers are earning £100k+, how many others are earning a lot less than this and bringing the average down?
Not only that, but the latest data from the Office of National Statistics (ONS) suggests that as of 2020, 39% of graduates in the UK were employed in non-graduate roles.3
This just highlights the fact that a graduate role out of university isn’t guaranteed, and many people with degrees end up working jobs that they don’t need a degree for.
What about studying abroad?
If it’s the cost of going to university that’s putting you off, then you may have thought about studying abroad. There are several universities in Europe that offer free or significantly lower tuition fees than British universities.
For example, you could attend a German university for free – the only catch is that you may need to get a residence permit before arriving, the course you want to do may not be in English, and you’ll need to finish your studies while in Germany.4
Not all European universities are cheaper than UK ones, however, and going to college in the United States can often be more expensive. But that doesn’t mean your options are limited - according to Times Higher Education, you could study in Italy, France, Belgium, Finland, Spain, Austria, and Norway for cheaper than you can in the UK.5
What are your alternatives?
University isn’t for everyone, and there are plenty of other ways you can secure a good, high-paying job without needing to spend thousands on your education.
For example, you could attend Open University and study while you work, or you could become an apprentice to a trade.
In 2015, the UK government launched ‘degree apprenticeships’, which are a three or four year could that pay you as you learn and gain experience – plus, these courses are paid for by your employer and the government, meaning that you probably won’t have to pay a penny towards it.
Please remember the value of your investments can go down as well as up, and you could get back less than invested.
Wealthify does not provide financial advice. Seek financial advice if you are unsure about investing.