Student financial support in Scotland: independent review

Summary of recommendations and next steps

Our recommendations are:

Fair funding

• Entitlement to a Minimum Student Income of £8,100 in both further and higher education
• Delivered through a mix of bursaries and student loans, with means-testing of bursaries to target support for those from the poorest backgrounds
• Student loans available in further education
• Further education loans written off in full for those transitioning from further to higher education
• Student loan terms enhanced by:
  − Repayment threshold being increased to £22,000
  − Write-off period for student loans being shortened from 35 to 30 years
  − Low interest rates continuing (lowest of RPI or 1% above Bank of England base rate)

Parity

• Common funding system across further and higher education, with local face-to-face support
• Common data system and a central budget for student support
• Flexibility for students around when they would receive financial support

Clarity

• A single, centralised online portal to provide information to all students
• Consistent guidance and communications for prospective students of all ages, parents and carers
• Local support to help students navigate the system, especially those with more specialist needs
• These recommendations are complemented by a proposed special support payment for students on benefits in further and higher education, similar to the approach already taken in England, Wales and Northern Ireland

Costs to implement

• To support the introduction of student loans in further education, the Scottish Government should provide an equal split of bursaries and loans for the poorest students in further education
• This would provide an immediate and meaningful improvement in funding to students and would cost an additional £16m per year
• There are other options, some of which would cost less and some more

Next steps

We invite the Scottish Government to consider these recommendations and accept them in full