The Hidden Cost of Higher Education: A Graduate's £75,000 Debt Burden
When my daughter secured her university place, our family celebrated a milestone achievement. She and her brother became the first generation from both sides of our family to pursue degrees. I eagerly anticipated graduation day – the traditional mortar boards, academic gowns, and the symbolic scroll representing her bright future ahead.
Despite the challenges of the COVID-19 pandemic, she successfully completed her studies, emerging with both a Bachelor's degree and a Master's qualification. She transformed into a brilliantly qualified young woman, fully prepared to enter the professional workforce. However, she also accumulated a debt so substantial it could metaphorically be "spotted from space."
The Reality of Repayment: £16 Monthly Against £75,000 Debt
When I recently asked about her outstanding balance, she responded casually: "No idea. The last time I checked, it was approximately £75,000, but the interest continues accumulating. I've stopped worrying about it." While she may have accepted this financial burden, I certainly have not.
After submitting around 80 job applications, she finally secured employment and began her professional career. She currently repays approximately £16 monthly toward that massive debt. I fear she's essentially throwing good money after bad, a pattern that may continue throughout her lifetime. Realistically, only the highest earners could ever hope to clear the interest on such a substantial debt, let alone the principal amount.
An Unfair System: Higher Interest Rates for Specific Cohorts
The situation becomes even more troubling when examining the details. She belongs to the thousands of graduates who attended universities in England and Wales between 2012 and 2023 under a specific plan that imposed higher interest rates than those affecting students from earlier or later periods.
This same student cohort also experienced the devastating educational disruptions caused by the COVID-19 pandemic. In-person teaching ceased abruptly, replaced by online instruction, yet the cost of their degrees remained unchanged. This raises serious questions about fairness and equity within the higher education system.
How can we justify graduates facing punitive tax rates typically reserved for society's wealthiest individuals? Doesn't this essentially function as a stealth tax targeting younger generations?
Broader Context: Rising Youth Unemployment Challenges
Meanwhile, recent official statistics reveal concerning trends in youth employment. Unemployment among 18-24-year-olds has reached a five-year peak. When excluding COVID-19 pandemic effects, this figure represents an 11-year high.
While university education undoubtedly provides valuable experiences, the era when a degree guaranteed excellent employment opportunities has clearly ended. The impending impact of artificial intelligence on future job markets adds further uncertainty to this already complex landscape.
Proposed Solutions: Capping Repayments and Systemic Reform
In my view, the most reasonable solution involves capping the total amount students must repay throughout their lifetimes. This approach would ensure that repayment amounts bear some reasonable relationship to the original sums borrowed.
We must also critically re-examine the entire university system – its operational mechanisms and, crucially, its funding structures. While nothing comes entirely free in today's world, surely the burden of educating future generations deserves more equitable distribution. These are the individuals who will drive our economy forward and provide care during our later years.
The current system places disproportionate financial pressure on young people attempting to build their futures, creating barriers that extend far beyond graduation ceremonies and into decades of financial strain.
