Although the individual has chosen to commit their opportunity costs to maximising their welfare by choosing to study, it is surprising that governments make use of public funds to subsidise this investment in human capital, as the returns to the investment are largely a private gain7. Taxpayer money is used to make up the difference of what the individual does not repay, signifying the strong interest the government has for maximising individual’s welfare. Beyond that, the government has the ability to redistribute wealth and resources to members of society less endowed10, in order to reduce inequality and improve efficiency and equity within a society. Inequality is still prevalent in the wage gap between men and women, in which the degree subject and university has no influence. Five years after graduation, the wage gap has increased up to 14%1, which continues with age. In addition, market mechanisms do not always allow for a fair allocation of income, for which government subsidies in the form of tuition loans as an in-kind transaction can allow prospective graduates from a poorer background to attend university. Although the government has improved access to university for poorer students, the issue of social mobility has not been eradicated, with richer students earning around 10%1 more than their poorer colleagues even doing the same subject at the same university.A change that benefits some people without harming any others, called the Pareto principle, should be the ideal when making welfare decisions. If a reallocation of goods to subsidise for university tuition benefits multiple people, then it may be valued as favourable by some people, but a judgement of equity has many different interpretations and the efficient allocation of resources does not necessarily mean the most equal amongst a society.It could be argued that education and training are the most valuable investments in human capital. Assuming that humans are rational beings, they ultimately seek to maximise their own utility, which could be achieved through completing a degree at university, although not without careful consideration of factors such as the individual’s own ability, the degree to pursue and which institution to pursue it in. The benefits of increased labour market earnings must be weighed against the costs of student debt, but overall the benefits of attaining a degree still greatly overshadow the costs.