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Majority of Young Grads Mistaken About Student Loan Repayment
19 Aug
Summary
- 58% of 18-34 year old graduates wrongly think loans must be repaid immediately
- Public underestimates universities' revenue and economic impact
- Misconceptions about international students seeking asylum in the UK
According to a report published on 2025-08-20, a significant number of young graduates in the UK hold misconceptions about student loan repayment. The study, conducted by the Policy Institute at King's College London and the Higher Education Policy Institute, found that 58% of graduates aged 18 to 34 incorrectly think they must start paying back their loans as soon as they get any paid job.
The report also uncovered other public misunderstandings about the higher education sector. For instance, only 6% of respondents correctly identified the University of Oxford as having the highest revenue among a list of organizations, even though its income was over £1 billion more than the second-highest, Greggs. Additionally, 13% of the public believe that the most common outcome for overseas students who entered the UK three years prior is to remain and seek asylum, when in reality, only 0.5% do so.
The study's director, Professor Bobby Duffy, noted that the "overestimation" of graduate regret about attending university is likely driven by "vivid, individual stories of graduate regret and the generally negative background noise about the declining value of a degree." However, the report suggests that universities are larger and more successful than the public often recognizes, contributing over £265 billion to the UK economy in 2021-22.
