Introduction

Student loans have recently become even more of a hot topic than usual. What once felt like a blessing, many now seen as a burden. Those who were frequently told you ‘won’t even notice it come out of your pay cheque’ are noticing the impact of creeping interest rates, with graduates feeling that they’ve been blindsided, mis-sold, and are losing faith in the system. As a result, many of those who can, are opting to make voluntary repayments, with a 12.7% increase in the total amount repaid via voluntary repayments (in 2024-25 from 2022-23; GOV.UK). At the same time, balances often significantly exceed the amount borrowed, due to interest rates.

With growing media coverage on the topic alongside social media discourse, the impact of this reality is more transparent than ever. What does this mean for future post-18 decision making?

A shift in perception

The conversation around student finance could reshape how young people think about university - influencing perceptions of value, affordability, and long‑term outcomes. As policy changes continue, there is a level of uncertainty about how these narratives will affect student decision‑making.

What’s changing in the student loan landscape, and why it matters

• Loan and fee increases. In 2025, maintenance loans and tuition fees increased again in line with inflation, after years of being frozen. While maintenance loans increased by 3.1%, as did tuition fees, bringing the maximum undergraduate fees to £9,535. (educationhub.blog.gov)
• Further increases are set for 2026/27, including a 2.71% increase in loans for living costs and higher support for lower‑income households, widening the gap between different student groups’ financial realities (gov.uk)

Repayment thresholds are shifting, with the April 2026 threshold rise offset by a freeze until 2030. Those on Plan 2 loans will be affected, resulting in many graduates paying more back each year due to pay rises (studentloancalculator.uk)

These changes form the backdrop of growing media focus on affordability, long-term debt, and questions about whether university offers ‘value for money’, especially in the current job market.

Students are being asked to pay more, navigate more complex rules, and make decisions in a climate of economic uncertainty.

For institutions, this means prospective students will likely be more cautious, more cost‑sensitive, and more influenced by perceptions of fairness and transparency.

Impact on student decision-making

These changes may affect how students will consider post-18 pathways. Previously, for many, financial concerns came from insufficient maintenance loans and cost of living as a student, rather than tuition fee loans. But the recent changes are meaning graduates are feeling the hit more than ever, and are making it known, so how will this impact prospective student’s decision-making?

Pressure on decision-making

Rising maintenance and tuition costs at a time when many are already feeling the strain of the cost of living means students, especially those from lower income backgrounds, may hesitate to apply to university at all. Even though loans technically cover costs, the perception of future debt becomes an even bigger barrier.

A widening equity gap

With fee and loan uplifts disproportionately affecting those already financially stretched, some students may feel pushed toward local universities, cheaper alternatives, apprenticeships, or delaying study.

Higher expectations of transparency and value

As financial risk shifts increasingly toward students, they expect universities to clearly communicate what they will gain - academically, socially, professionally, and financially -from their investment.

Uncertainty impacting recruitment

Even small policy changes can sway Year 12/13 behaviours, influencing the timing of applications, choices between institutions, and attitudes toward deferral.

Why research matters now

The current climate demands deeper, more empathetic understanding of how students feel, not just what they do.

This is where Platypus comes in. Our ethos is to amplify young people’s voices and experiences. We can help institutions cut through assumptions, stereotypes, and policy noise by:

Understanding the student journey in its real-life context

Our ethnographic and mixed‑method approaches reveal the lived realities behind application decisions, financial anxieties, and shifting aspirations, including how students and parents interpret loan changes and how this influences behaviour.

Identifying communication gaps and opportunities

We uncover how students navigate information, what they trust, and how messaging lands emotionally - enabling institutions to design communications that reassure rather than overwhelm.

Mapping decision drivers across diverse groups

Our work with institutions and national bodies shows the importance of segmentation - different demographics respond differently to financial policy changes. We provide nuanced insight into these differences to support targeted recruitment and support strategies.

Stress‑testing propositions and value claims

Through co‑creation and scenario testing, we help higher educational institutions and organisations refine their positioning and messaging to reflect what students actually need to hear during periods of uncertainty.

Supporting long‑term strategy

We equip institutions with actionable frameworks, touchpoint maps, and visual outputs - from student-journey infographics to case studies - that translate insight into strategy, marketing, and policy.

How working with us can help you and support students

Platypus can support with:

• An evidence‑based understanding of how the post-18 landscape is shifting perceptions, motivations, and barriers.
• Guidance on how to communicate to students in a supportive, student‑centred way.
• Tools to strengthen your value proposition in a market where students are increasingly scrutinising return on investment.
• A more empathetic, inclusive approach to understanding the pressures that shape young people’s decisions.

Get in touch to find out how we can help with your research needs

Or read more about our experience in the education and student landscape