University Education Fails to Deliver Value as Taxpayer Costs Soar
In a stark assessment of the higher education sector, it has been argued that a university education no longer represents good value for money. Students are increasingly facing financial difficulties due to a lack of financial knowledge, while the system itself is burdened by inefficiencies and declining standards.
The Growing Burden of Student Debt
The plight of graduates saddled with debt has dominated media headlines in recent weeks. Hundreds of thousands of individuals may never earn enough to repay their student loans, leading to these debts being written off at the expense of taxpayers. This situation highlights a deeper crisis within the university sector, which extends beyond just financial issues to encompass a wide range of academic activities.
Grade Inflation and Declining Standards
A detailed investigation by the Daily Telegraph has revealed significant grade inflation in university degrees. Nearly one-third of students now graduate with a first-class degree, a figure that has doubled since 2010 and quadrupled compared to 1990. This trend coincides with a massive expansion of the sector over the past three decades, which has led to a marked decline in the average quality of student intake. For instance, last year, 75 percent of applicants with three D grades or worse at A-level were offered university places, yet the proportion achieving top degrees has soared.
The explanation for this phenomenon is straightforward: students are now treated as customers, and universities aim to provide a pleasant customer experience. One way to achieve this is by awarding more first-class degrees. Reports suggest that staff are often encouraged to give higher grades, raising doubts about whether the apparent increase in student achievement is due to improved teaching quality. In reality, university teaching practices largely remain stuck in the past.
Outdated Teaching Methods
An example of this stagnation can be seen in introductory economics courses, often referred to as economics 101. The most popular textbook for these courses is written by Harvard economist Greg Mankiw. About a decade ago, Mankiw made one-hour lectures for each of the 36 chapters of his book freely available on YouTube. Despite this, university staff across the country continue to be paid to deliver lectures based on the same material, a practice that is largely unnecessary as students can access Mankiw's own explanations and review them repeatedly.
Furthermore, advancements in artificial intelligence offer the potential for even higher quality teaching across almost any subject. Tools like ChatGPT or Claude enable students to engage in expert-level discussions and clarify misunderstood points in various ways, effectively democratizing access to the kind of personalized tutoring once reserved for elite institutions like Oxford and Cambridge.
Ineffective Research and Bureaucratic Bloat
Beyond teaching, the other primary activity of academic staff is research. However, this is often hampered by the endless form-filling required by the expanded bureaucracies that have taken over many universities. The main outlet for published research is the peer-reviewed journal, venerated by academics. While the number of journals and published papers has surged over the past 10 to 15 years, this does not necessarily indicate an increase in valuable scientific work.
A significant portion of what is published in these journals is of little to no value. Academics typically judge the quality of a paper by how many times it is cited in subsequent publications by other researchers. In most disciplines, the median number of citations for an article is zero, underscoring the lack of impact of much published research.
Taxpayer Underwriting and Value for Money
The university sector is largely underwritten by taxpayers, yet it is difficult to argue that, overall, society is receiving proper value for this investment. With issues ranging from student debt and grade inflation to outdated teaching and low-impact research, the system appears to be failing both students and the public. As Paul Ormerod, an Honorary Professor at the Alliance Business School at the University of Manchester, points out, the current model is unsustainable and calls for a reevaluation of how higher education is funded and delivered.
