Blog / Is university worth it?
Is university worth it in NZ? An honest comparison
For a long time, the advice was simple: go to uni, any degree, you'll be fine. In 2026 it's not that simple. Fees Free is ending, the job market for young people is tough, and plenty of well-paid jobs don't need a degree. So – is university worth it? It depends on one thing more than anything else.
The short answer
University is worth it when it's the road to something you actually want. It's a poor deal when it's a way to put off deciding. The degree itself matters far less than whether it leads somewhere you want to go.
What's changed in 2026
- Fees Free is ending. Final-year Fees Free only covers learners who finish an eligible qualification by 31 December 2026 (Inland Revenue). If you start in 2027, you'll pay full fees. More in Fees Free ends in 2026.
- Fees can go up. Budget 2026 lets universities and other providers raise tuition and training fees by up to 6% in 2027 (Ministry of Education).
- Student loans are still interest-free if you stay in New Zealand (StudyLink). You repay 12% of every dollar you earn over $24,128 a year (Inland Revenue) – the threshold that applies from 1 April 2026 (Work and Income).
- The job market for young people is tough. The number of unemployed 15 to 24-year-olds rose by 12,200 – up 19.5% – in the year to June 2026 (Stats NZ). A degree doesn't guarantee a job, and neither does skipping one.
Uni vs apprenticeship vs study vs work
| Road and time | Earn while you learn? | Best for |
|---|---|---|
| University degree 3+ years | Part-time only | Careers that require a degree (teaching, nursing, engineering, law, medicine, many sciences) or people who love a subject |
| Apprenticeship 3–4 years for many trades | Yes – it's a job | Hands-on people who want a qualification, pay from day one and a clear ladder up |
| Polytechnic or private training provider Months to 3 years | Sometimes | Practical certificates and diplomas for a specific job, often with placements |
| Work first As long as you like | Yes | Anyone unsure – you earn, learn how workplaces work and find out what you like |
Apprenticeship vs university: cost, pay, time and flexibility
If you're weighing up a trade against a degree, these are the differences that matter most day to day.
| Compare | University degree | Apprenticeship |
|---|---|---|
| Cost | Tuition fees every year. For example, a full-time year of a Bachelor of Arts at the University of Canterbury costs $7,789 in 2026, plus a student services levy (University of Canterbury). Over three years that's more than $23,000 in tuition alone, before living costs. Most people borrow it. | There are training fees too – Tahatū's plumbing apprenticeship listing, for example, shows $3,000 to $8,100, and some employers pay them (Tahatū). You're earning while you pay. Ask the provider and employer what the fees are and who pays them. |
| Pay while training | None from the degree itself. Many students work part-time, and some get StudyLink support. | You're an employee, paid at least the training or adult minimum wage – often more, and it may go up as your skills grow (Tahatū). The training and starting-out minimums are $19.16 an hour from 1 April 2026 (Employment NZ). |
| Time | A bachelor's degree is at least 360 credits – usually 3 years full-time. Some, like engineering, health sciences and law, take longer (NZQA). | 3–4 years for trades like electrician, plumber and carpenter (Tahatū). You finish with a New Zealand Certificate at Level 4. |
| Getting in | You need to meet the university's entry requirements for your programme. | You must be 16 or older, with no upper age limit – and you need to find a job with an employer before you can start (Tahatū). |
| Flexibility | You can often change subjects early on or study part-time – but every extra year adds to your loan. | Your training is tied to your job. Changing trade usually means a new apprenticeship and a new employer. |
| Where it leads | The only way into some careers, like teaching, nursing, medicine and law. | A qualified trade. Some tradespeople go on to supervise teams or run their own business. |
It doesn't have to be one or the other for life. Some people finish an apprenticeship and study later; others leave uni and start a trade. Both roads stay open.
Want to see what an apprenticeship actually looks like? Read how to get an apprenticeship in NZ, then the trade guides for electrical, building and carpentry, mechanic and plumbing apprenticeships.
The money, honestly
The case for uni
On average, people with degrees earn more – but it depends a lot on the subject. Ministry of Education research on young graduates found that earnings “vary considerably by field of study” (Education Counts, 2013). For current figures, Tahatū shows what graduates of a qualification earn, using Stats NZ data combined with Inland Revenue income data (Tahatū). A medicine or engineering degree pays off very differently from a degree you picked because you had to pick something.
The case for an apprenticeship
Apprentices earn from day one. Once qualified, the pay can be very good. According to Tahatū, most electricians earn between $66,000 and $107,000 a year, most plumbers between $56,000 and $91,000, and most line mechanics between $81,000 and $129,000 (before tax, checked 3 October 2026) – without three years of uni fees behind them.
The hidden cost: time
Three years at uni is also three years not earning a full wage. That's fine if the degree leads somewhere. It's expensive if you finish and still don't know what you want.
When uni is clearly the right call
- The job you want requires a degree – teacher, nurse, doctor, engineer, lawyer, psychologist, vet, architect.
- You genuinely love a subject and want to go deep.
- You've tested your idea – talked to people in the job, done work experience – and you're still keen.
When to think twice
- You're going mainly because your friends are, or because it's expected.
- You can't name a job or two the degree would lead to.
- You're hands-on and dread another three years in a classroom.
None of these mean “never”. They mean “maybe not yet”. Uni will still be there in a year or two – often with a much more motivated you.
How to decide
Five questions to ask yourself
- What job or two could this lead to – and have I talked to someone who does it?
- Does that job actually need a degree, or is there another way in?
- How will I pay for it, and am I OK with the loan?
- Do I learn best in a classroom, or by doing?
- If I didn't go this year, what would I do instead – and would that teach me something?
Try it before you choose
- Talk to one apprentice and one uni student in areas you're curious about. Ask what a normal week looks like and what surprised them.
- Get a taste while you're at school. Gateway and trades academy programmes can help you get an apprenticeship when you leave (Tahatū). Uni open days are a chance to see what study there is really like.
- Call a training provider. Ask about entry requirements, fees and whether they can help you find an employer.
It's normal not to be sure yet. If you can't answer the first question, start with “I don't know what to do with my life” – start here or try the AI coach. The demo is for ages 16 and up. If you're leaning towards a trade, read how to get an apprenticeship in NZ.
Questions
Is a degree still worth it in NZ?
For many careers, yes – teaching, nursing, engineering, law and medicine need one, and graduates earn more on average. But it depends heavily on what you study, and a degree you don't use is an expensive piece of paper. Plenty of well-paid jobs don't need one.
Is an apprenticeship better than university?
Neither is better for everyone. An apprenticeship means you're paid while you train and finish without three years of uni fees, but you need an employer first. University is the only way into some careers. The right choice depends on the work you want and how you learn best.
Is Fees Free still available in 2027?
Not for new study. Fees Free only covers learners who complete an eligible qualification by 31 December 2026. If you finish in 2026, you can still apply in 2027, within a year of finishing. If you're starting study in 2027, plan to pay full fees, usually with a student loan.
How does the NZ student loan work?
Student loans are interest-free if you stay in New Zealand. Once you earn over $24,128 a year before tax, 12% of every dollar above that goes towards your loan, taken automatically from your pay.
Can I go to uni later?
Yes. Many people start a degree in their 20s or later, often with a much clearer idea of why. Working or doing an apprenticeship first doesn't close the door.
Want a plan that's actually about you? Week by Week is an AI coach that helps you turn what you've done into career paths that fit, any current job ads near you and one small step each week. Join with a nickname – no real name needed. Your school can try it free with 5 students for a month.
Sources
- Inland Revenue, New to Fees Free (checked 3 October 2026)
- Ministry of Education, Budget 2026: tertiary education initiatives (checked 3 October 2026)
- University of Canterbury, Domestic tuition fees 2026 (checked 3 October 2026)
- NZQA, Bachelor's degree – credits and length (checked 3 October 2026)
- StudyLink, What happens to your loan (checked 3 October 2026)
- Inland Revenue, Repaying my student loan when I earn salary or wages (checked 3 October 2026)
- Ministry of Education (Education Counts), Moving on up: what young people earn after their tertiary education (published 2013, checked 3 October 2026)
- Tahatū, Our data – where graduate earnings come from (checked 3 October 2026)
- Work and Income, Student loan repayment thresholds from 1 April 2026 (checked 3 October 2026)
- Tahatū, Apprenticeships in plumbing, gasfitting and drainlaying (fees; checked 3 October 2026)
- Employment New Zealand, Minimum wage rates and types (checked 3 October 2026)
- Tahatū, About apprenticeships (checked 3 October 2026)
- Tahatū, Electrician, Plumber, Carpenter and Line mechanic career pages (pay ranges and training time, checked 3 October 2026)
- Stats NZ, Labour market statistics: June 2026 quarter (released 5 August 2026, checked 3 October 2026)