One in four university students are on courses which are not financially worthwhile for the taxpayer, analysis suggests, Daily Mail is reporting.
Official government data reveals 25 per cent of youngsters are studying for degrees which will produce a negative return for the public purse.
In addition, an estimated 18 per cent of students are seeing a negative return on their personal investment, and would be better off had they not attended at all.
Despite course tutors claiming their graduates go on to successful careers, in reality a ‘substantial minority’ never get jobs which pay well. It means they never earn enough to repay much of their student loans, and after 30 years the debt is wiped – with the taxpayer picking up the bill.
This year, the Government is due to publish the results of a review of the higher education sector, with a specific focus on fees and value-for-money.
Will Tanner, director of Onward, said: ‘Britain’s student loans system is based on the premise that graduates will always earn more than people who do not go to university.”
It found that while on the whole graduates earn more than non-graduates, in 2015-16, 40 per cent of graduates were enrolled in courses which led to median earnings of less than the student loan repayment threshold of £25,000 after five years. In addition, 10 per cent of students were enrolled in courses with median earnings of less than £25,000 ten years after they have graduated –equating to 134,000 students each year.
Data suggests 83 per cent of all student loans will never be repaid – with expected write-offs in 2049-2050 of £28.8billion.
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