Post-study pay dictates choice of university

BRITISH universities that boast high graduate salaries have seen a bigger uptick in applications over the past five years than universities with lower average post-university wages, new research shows.

The data suggests that students are increasingly being drawn to institutions that can virtually guarantee they will get a well-paid job after graduation.

According to property company Savills, which looked at UCAS application numbers and linked them to graduate salaries, universities with higher graduate starting salaries have seen significantly greater increases in demand from prospective students since 2012.

For example, Imperial College London graduates earn an average of £30,600 in their first job post-graduation – more than £5,000 above the UK average. Applications at Imperial have grown by 22 per cent since 2012.

Graduates at the University of Bristol go on to jobs that pay £2,700 above average, and the university has seen a 20 per cent increase in applications since 2012. Southampton graduates earn £2,800 more than average and applications there have grown 26 per cent, while Royal Holloway graduates typically earn £1,900 more than other university leavers and applications there have risen by 24 per cent.

York St John University, where graduates earn £20,300 per year on average, has seen its applications fall by nine per cent since 2012.

Northampton University has seen its application numbers fall three per cent over the past five years. Its graduates earn £3,200 below the UK average. Savills found that applications for universities where a graduate salary averages £17,500 have fallen by 2.9 per cent since 2012. For salaries of £20,000, applications have risen by a modest 1.7 per cent, and for salaries of £22,500, applications are up 6.4 per cent.

The biggest jump in entry requests – 20.3 per cent over the past five years – is for universities where a graduate salary has topped £30,000.

Lawrence Bowles of Savills said: “For every difference of £1,000 in average graduate salary, applications grew by an extra 1.9 per cent.”

Last month, research from the Institute of Fiscal Studies (IFS) showed that students entering university this year can expect to face debts of £57,000 once they graduate. “With such a high liability, it’s no wonder students are flocking to universities with higher graduate salaries,” Mr Bowles said.

The institute warned of “major issues” with the current tuition fees system after it found that almost eight in 10 graduates will never pay back their full student loan. It also found that most will still be paying off loans into their 50s.

Mr Bowles added: “Whether they sit proudly at the top or languish low in the rankings, tuition fees at most universities are set at the £9,250 annual cap. Given these costs, savvy students are on the lookout for where they can get the best value for money.