In this paper, the short-cut method is used to estimate expected rates of financial returns to higher education in the Czech Republic and a modified version of the method is used to suit the current English system of deferred tuition fees. First year university students were asked to estimate their expected earnings with and without a university degree at two points in time. The findings show that students perceive higher education to be a profitable investment and that rates of return vary by gender as well as by country and place of study. We conclude that the current level of tuition fees in England does not act as a disincentive for students to enter higher education. (Contains 4 tables and 2 figures.)