Rethinking the price and value of a degree in a changing world

This blog was kindly authored by Professor Deba Bardhan Correia, Dean – Faculty of Business, Humanities & Social Sciences, and Chris Payne, Registrar & Chief Administrative Officer, both of the University of Buckingham.

We are at a point where the question is no longer simply what higher education costs, but whether students perceive it to be worth it at all.

As Buckingham marks its 50th anniversary, this provides an opportunity to reflect on how the higher education landscape is changing and how, in many respects, it remains the same.

The Lifelong Learning Entitlement, the emergence of artificial intelligence and changing attitudes towards education are beginning to reshape how learning is perceived, accessed and consumed. Yet the fee structure for full undergraduate degrees has remained remarkably stable regardless of subject demand, subject nature or the mode and cost of delivery. In contrast, graduate outcomes are more variable, student satisfaction is under greater scrutiny and the cost-of-living crisis has intensified questions about what a university education is worth and whether the traditional model continues to meet student expectations.

What has changed most significantly is the context in which students make decisions. University is no longer compared solely with other universities. Increasingly, prospective students weigh higher education against degree apprenticeships, employment, entrepreneurship and more flexible forms of learning. They are considering opportunity costs alongside tuition fees and asking what they will gain, how long it will take and whether there are different routes to achieve similar outcomes.

At the same time, artificial intelligence is reshaping assumptions about skills, careers and the future of work. For many students, the question is no longer simply whether they can afford university, but whether a degree represents the right investment of time, money and effort in an increasingly uncertain environment.

Alongside these developments, student expectations are changing. Concerns around mental health are more visible, and a growing number of students are choosing to remain at home and commute rather than move away. Cost is one factor, but so too are support networks, wellbeing and individual learning needs. Greater awareness of neurodiversity has also highlighted that students engage with learning in different ways and thrive in different environments. These factors add further nuance to how students assess both the value and the risks associated with attending university.

Risk, in fact, is becoming an increasingly important part of the conversation.

Prospective students rarely make decisions based on detailed modelling of long-term student loan repayments. Instead, they make judgements based on the headline cost, the length of study, employment prospects and the alternatives available to them. The challenge for universities is therefore not simply affordability. It is helping students navigate uncertainty.

These decisions are being made in a changed environment as well. Whilst the previous generations often relied on schools, universities and family networks to understand the value of higher education, today’s applicants encounter a constant stream of peer-generated content across TikTok, Instagram, YouTube, Reddit and LinkedIn, where higher education is discussed, debated and scrutinised in real time.

The significance of social media is not that it changes the facts about higher education, but that it changes how those facts are interpreted. A graduate discussing difficulties finding work after completing a degree, an apprentice sharing earnings progression, or a young entrepreneur explaining why they bypassed university altogether can influence perceptions far beyond their own experience.

Consider the influence of TikTok. A video entitled “Why I regret my degree” or “Why I chose a degree apprenticeship instead of university” can reach hundreds of thousands of viewers within days. Equally, content documenting accommodation costs, graduate job searches or alternative career pathways often generates extensive engagement. Such experiences may not be representative, but they are frequently perceived as authentic and relatable.

For Generation Z, value is no longer defined solely by institutions. It is increasingly negotiated through networks of peers, creators and online communities. Higher education therefore operates not only in a marketplace of educational choices but also in a marketplace of narratives where what students hear from others can be as influential as what universities say about themselves.

Lower tuition fees and shorter degrees can help address some of these concerns. They reduce the amount students need to borrow and lower wider costs associated with study, including accommodation and living expenses. While this may not significantly change eventual repayment patterns for every graduate, it can alter perceptions of risk at the point of entry. In that sense, the effect is as much psychological as financial.

Sometimes a relatively modest difference in cost or duration may be the factor that enables a student to choose higher education rather than walk away from it altogether.

The labour market those students seek to enter is itself changing. Artificial intelligence is beginning to reshape entry-level work in many sectors. At the same time, some graduates report applying for large numbers of positions without success and, even when employment is secured, it is not always aligned with the level or subject of study. These realities inevitably influence how prospective students evaluate the financial and non-financial returns of higher education.

The University of Buckingham’s  decision to reduce tuition fees on selected programmes to £7,830, (the lower limit accessible through Student Finance England), was therefore a deliberate one. As an independent university, we have greater flexibility to ask questions about pricing, provision and student demand that may be more difficult elsewhere. We are seeking to  test broad proposition: that high-quality higher education can be delivered at this price point and that lower costs may encourage students who are questioning the value of a degree to reconsider their options. Lowering the headline price, alongside offering a shorter and more intensive degree, speaks directly to the factors students tell us matter most: cost, time and perceived value.

The courses included within the initiative are concentrated in areas where demand remains strong, including business and creative writing. This reflects how students are making increasingly sophisticated judgements about future opportunities and are often gravitating towards subjects they believe will provide versatility in a changing labour market.

Taken together, these developments suggest a different way of thinking about higher education provision. Students are not simply comparing repayment profiles. They are making broader assessments about risk, flexibility, experience and return. The question is not whether a degree has value, but how that value is understood, communicated and experienced by different groups of students.

The wider challenge for the sector is whether current structures reflect these realities with sufficient nuance. A largely uniform fee structure sits uneasily alongside a student population whose needs, expectations and constraints are becoming increasingly diverse.

As students make decisions about their futures, universities should recognise that they are not rejecting higher education. Rather, they are becoming more discerning consumers of it and increasingly, they are asking questions collectively in digital spaces where perceptions are formed socially and shared rapidly.

If students are asking whether university is worth it, the response cannot be reassurance alone. We must provide greater transparency about costs, experiences and outcomes, alongside a recognition that there is no longer a single student journey. In the years ahead, universities that thrive are likely to be those most willing to engage honestly with this complexity, rather than assuming yesterday’s answers will continue to satisfy tomorrow’s students.