Quarter of UK graduates financially worse off from university degrees, IFS finds

The Institute for Fiscal Studies (IFS) has published new analysis indicating that around one quarter of UK graduates may ultimately lose money by attending university, once the costs of student loans and additional taxes are weighed against lifetime earnings gains. The research, which examined the outcomes of students who graduated during the 2008 financial crisis, found that while the majority can still expect to be approximately £100,000 better off over their careers, those completing degrees in creative and performing arts are particularly likely to face negative financial returns. These findings raise important questions about the value proposition of higher education and the guidance provided to young people making post-16 choices. For local authorities and careers services, the research underscores the need for comprehensive advice that helps young people understand not just the academic benefits of university study, but also the realistic employment outcomes and financial implications of different degree subjects, ensuring that informed decisions are made about pathways into higher education and the wider labour market.