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What are the financial benefits of going to university?

Many parents question whether going to university is too expensive. For many, the main issue is whether going to university will mean your child gets a better job after they graduate. Will their job prospects be enhanced because of their higher education experience, or will they be saddled with a huge debt?

Most parents would consider going to university on a full time basis to be an expensive option, both financially and in terms of their time. There are alternative ways of gaining higher-level qualifications and you can read more about them here and you can find out more about the finances of going to university in the answer 'How much will it cost my child to go to university'.

Financial rewards of a degree

What parents are often less aware of is the financial rewards which many graduates gain as a result of going to university. This graph below taken from bestcourse4me shows that, on average graduate earnings significantly out perform non-graduate earnings over the course of a person's working life. In addition the graph also shows the difference between graduates attending the Russell Group universities and those in the Global Top 20 universities.

 

A BIS report published in 2015 shows that the unemployment rate for young graduates at 3.9% is the lowest since 2007 and that the median salary for working age graduates, aged 16-64, is £31,000 whilst for non graduates it is £22,000.

Graduates need a degree AND employability skills

But a degree on it’s own is not the golden ticket to a well-paid job. Most professional and managerial employers seek graduates who have also got involved in the wider university life. This could be through work experience, a placement in industry or participation in the clubs and societies at university. Which University has written this useful article on why this is important.

Careerpilot has a whole section on the benefits of Higher Education, not just the financial ones which you can read here

More information:

bestcourse4me.com shows you the lifetime earnings per week for different degree subjects plus much more information.

moneysavingexpert.com gives you a very balanced view on student finance

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