Student Finance and Wellbeing Study (SFWS) Scotland 2023-2024: main report

10. Impact of finances on study decisions

In the survey, students were asked about the impact of finances on their study decision making. First, they were asked, 'Did the student funding and financial support available to you affect your decisions about your studies in any way?' with answer options 'Yes' or 'No'. This was then followed up by a question asking about the ways in which the available funding and financial support affected the respondent's decisions about studying? Respondents could select any or as many of the following 8 answer options which applied to them:

• 'It affected my decision to study full-time or part-time;
• 'It affected my decision of whether to study at a nearby university or college';
• 'It affected my decision to study in Scotland';
• 'It affected my decision about what course to take;
• 'It affected my decision about what college or university to attend;
• 'It affected my decision about when to start my course;
• 'It affected my decision to study in another way;
• 'I would not have studied without funding'.

The data for each study level and students from under-represented groups follow.

10.1. Key findings

• Although some students reported that the availability of student funding had not had an impact on their decisions on what, where and how to study, between a third and a half of FE (32%), HN/undergraduate (46%) and students from under-represented groups (49%), and almost two-thirds of postgraduates (62%) reported that their study decisions had been affected by the availability of student funding.
• Students aged 25 and over in all student groups were the most likely to report their study decisions were affected by funding availability.
• The availability of financial support was a factor in student's decisions on whether to study. Of those who said their decision making had been affected, 51% to 62% stated that they would not have studied if funding had been unavailable, with postgraduate and students from under-represented groups more likely to say this.
• Whilst financial issues did not play a key role in decision making for some students in terms of where and how they studied, for others who took part in the qualitative research it was a critical factor in their decision to enter or return to study; whether to study full- or part-time; or in selecting which university or college to attend, and whether to study locally.

10.2. FE students

10.2.1. Availability of student funding and financial support

Around a third (32%) of FE students reported that their study decisions had been affected by the availability of student funding.

Certain groups of FE students were more likely to report that their study decisions had been affected by the availability of student funding, with those aged 25 and over more likely (42%) than younger students (21% of those aged 20 to 24 and 25% of those aged 16 to 19) to report that the financial support available had affected their study decisions. Those living independently (renting or with a mortgage) were more likely than those living with their parents to report that the availability of student funding had affected their study decisions (40% and 25%, respectively).

10.2.2. Impact of funding and financial support on study decision making

Among FE students who reported that their study decisions had been affected by the financial support available, around half (51%) stated that they would not have studied without funding. Around a third (36%) of FE students said that funding availability had affected their decision to study full-time or part-time and 13% said that the availability of student funding had influenced their decision to study at a university or college close to them. All other options were chosen by 14% or fewer FE students.

• Younger students (19% of those aged 16 to 19) were more likely to say that the availability of student funding had influenced their decision to study at a university or college close to them, compared with 11% of those aged 25 and over.
• Female FE students were more likely than male students to say that the availability of student funding had affected their decision about what course to take (13% and 2%, respectively) and had affected their decision about when to start their course (9% and 5%, respectively).
• Those living independently (renting or with a mortgage) were more likely than those living with their parents to say that the availability of funding had affected their decision to study full-time or part-time (38% and 26%, respectively); and affected the decision about what course to take (13% and 5%, respectively).
• Conversely, those living with their parents were more likely than those living independently (renting or with a mortgage) to say that funding had affected their decision of whether to study at a nearby university (17% and 11%, respectively).

The ways in which funding and financial support available affected students decisions about studying did not vary significantly by parental experience of HE or area deprivation.

10.3. HN/undergraduate students

10.3.1. Availability of student funding and financial support

A higher proportion (46%) of HN/undergraduate students, than FE students, reported that their study decisions had been affected by the availability of student funding and financial support.

As with FE students, the proportion of HN/undergraduate students reporting that the available financial support had affected their study decisions increased with age, with 37% of HN/undergraduate students aged 16 to 19, compared with 47% of those aged 20 to 24, and 53% of those aged 25 and over saying that their study decisions were affected by the availability of student funding.

Those living independently (renting or with a mortgage) were also more likely (51%) than those living with their parents (35%) to report that the availability of financial support had affected their study decisions.

10.3.2. Impact of funding and financial support on studying decision making

As with FE students, around half (54%) of HN/undergraduates stated that they would not have studied if funding had been unavailable. Approximately 40% of HN/undergraduate students said funding had affected their decision to study in Scotland with 3 in 10 (30%) stating that the finance available had affected their decision to study full-time or part-time, which college or university to attend (29%), or whether to study at a nearby college or university (29%). All other options were chosen by 15% or fewer of HN/undergraduate students.

Overall, the ways in which the funding and financial support available affected students' decisions about studying varied significantly by age (Figure 10.1), except the decision about what course to take. However, there was no clear pattern by age. For example:

• Students aged 25 and over were more likely than those aged 16 to 19 to report that they would not have studied without funding (66% and 37% respectively); and that financial support had affected their decision to study full-time or part-time (42% and 15%, respectively).
• Conversely, students aged 16 to 19 were more likely than those aged 25 and over to report that financial support available had affected their decision to study in Scotland (50% and 20%, respectively) and that funding had affected their decision to study at a nearby university or college (40% and 15%, respectively).

A number of the ways in which decisions about studying were affected by the funding and financial support available varied significantly by full-time or part-time status. For example:

• Part-time students were more likely than full-time students to report that they would not have studied without funding (62% and 53% respectively) and that financial support had affected their decision to study full-time or part-time (47% and 25%, respectively).
• Conversely, full-time students were more likely than part-time students to report that financial support had affected their decision to study in Scotland (45% and 13%, respectively) and affected their decision on whether to study at a nearby university or college (34% and 10%, respectively).

Overall, the ways in which decisions about studying were affected by the funding and financial support available did not vary significantly by area deprivation, with a couple of exceptions.

• Those from the 20% most deprived areas (41%) were more likely than those in the 80% least deprived areas (27%) to say that financial support available had affected their decision to study full-time or part-time.
• Conversely, it was those in the 80% least deprived areas (43%) who were more likely than those in the 20% most deprived areas (29%) to say that their decision to study in Scotland had been affected by the financial support available.

Those living with their parents were more likely than those living independently (renting or with a mortgage) to say that funding had affected their decision about whether to study at a nearby university (42% and 26%, respectively). In contrast, those living independently (renting or with a mortgage) were more likely than those living with their parents to say that funding had affected their decision on what course to take (12% and 6%, respectively).

The only significant difference by sex was that male students (45%) were more likely than female students (36%), to say that financial support had affected their decision to study in Scotland.

10.4. Postgraduate students

10.4.1. Availability of student funding and financial support

Postgraduates were the most likely student group (62%) to report that the student funding and financial support available had affected their study decisions. Around two-thirds (67%) of female postgraduates stated that their study decisions had been affected by the available finance, compared with just over half (52%) of male students.

Postgraduate students whose parents had not experienced HE (68%) were more likely than those whose parents had experienced HE (59%) to say that the student funding available had impacted on their study decisions. There were no differences by area deprivation.

10.4.2. Impact of funding and financial support on studying decision making

Among postgraduate students who reported that their study decisions were affected by the student funding and financial support available, around 6 in 10 (62%) reported that they would not have studied without funding. Around 4 in 10 (42%) postgraduates reported that the available financial support had affected their decision to study full-time or part-time, around 3 in 10 (29%) reported that it had affected their decision about whether to study in Scotland, around a quarter (26%) that it had affected their decision about which university to attend, and around 1 in 5 (22%) reported it affecting when to start their course and what course to take (20%).

A number of the ways in which decisions about studying were affected by the funding and financial support available varied by subgroups. For example:

• Postgraduate students aged 20 to 24 were more likely than students aged 25 and over to say that finance affected their decision about whether to study in Scotland (49% and 22% respectively).
• Female students (66%) were more likely than male students (50%) to report they would not have studied without funding.
• Around half (49%) of those whose parents had HE experience were more likely than those whose parents did not (37%) to report that available finance had affected their decision about whether to study full-time or part-time.

The ways in which decisions about studying were affected by the funding and financial support available did not vary significantly by accommodation type or area deprivation.

10.5. Students from under-represented groups

10.5.1. Availability of student funding and financial support

Approximately half (49%) of students from under-represented groups in this study stated that the availability of student funding and support had affected their study decisions.

As with FE, HN/undergraduate and postgraduate students, students from under-represented groups who were aged 25 and over were more likely than those aged 16 to 19 to report their study decisions had been affected by funding availability (54% and 40% respectively). Students from under-represented groups who were living independently were also more likely to report their study decisions had been affected by funding availability (54%) than those living with parents (38%). There were no differences by parental HE experience or area deprivation.

10.5.2. Impact of funding and financial support on studying decision making

Among students from under-represented groups who reported that their study decisions had been affected by the financial support available, 60% stated that they would not have studied without funding, similar to postgraduate students and slightly higher than the proportion of FE and HN/undergraduate students.

Around a third to a fifth of students from under-represented groups reported that the student finance available had affected their decision to: study full-time or part-time (35%); study in Scotland (25%); study at a nearby university or college (22%); and about what college or university to attend (22%).

A number of the ways in which decisions about studying were affected by the funding and financial support available varied significantly by age, though there was no clear pattern. For example:

• As was seen for HN/undergraduate students, those aged 25 and over from under-represented groups were more likely than those aged 16 to 19 to report that they would not have studied without funding (64% and 48%, respectively) and that the student finance available had affected their decision to study full-time or part-time (40% and 23%, respectively).
• Conversely, students aged 16 to 19 (37%) were more likely than those aged 25 and over to report that funding availability affected their decision of whether to study at a nearby university or college (14%). Those aged 20 to 24 were more likely than those aged 25 and over to say that student funding available affected their decision to stay in Scotland (51% and 17% respectively) and their decision about which college or university to attend (34% and 16% respectively).

Female students were more likely than male students (15% and 8%) to say that the availability of funding affected their decision about what course to take. Those living with their parents were more likely to say that funding affected their decision of whether to study at a nearby university or college (30%) and their decision about what course to take (15%) compared with those living independently (renting or with a mortgage) (20% and 8%, respectively).

Overall, the ways in which decisions about studying were affected by the funding and financial support available did not vary significantly by area deprivation.

10.6. Cost of tuition fees

Students in the survey who reported paying tuition fees, were also asked, 'Did the cost of the tuition fees at your university affect your decisions about studying in any way?' with answer options 'Yes' or 'No'.

10.6.1. HN/undergraduate students

Among HN/undergraduate students who were paying tuition fees, 44% reported that the cost of tuition fees at their institution had affected their study decisions. Around half (48%) of those living independently (renting or with a mortgage) reported that the cost of tuition fees had affected their study decisions, compared with 23% of those living with their parents. There were no statistically significant differences by sex, age, whether students were full-time or part-time, parental experiences of HE, or area deprivation.

Among those who said that the cost of tuition fees had affected their study decisions, nearly one-third of HN/undergraduate students (31%) reported that they would not have studied without funding, compared with around half of postgraduate students and those from under-represented groups. In addition, 44% reported that the cost of tuition fees had influenced their decision to study full-time or part-time. The cost of tuition fees also influenced around a quarter of HN/undergraduate students' decisions to study in Scotland (26%) and their decisions about which institution to attend (23%). A fifth (20%) of HN/undergraduate students reported that their decision about when to start their course had been influenced by the cost of tuition fees at their chosen institution.

10.6.2. Postgraduate students

Around a half (50%) of postgraduate students and HN/undergraduate students (44%) who were paying tuition fees reported that the costs of tuition fees at their institution had affected their study decisions. There were no significant differences by any of the key sub-groups.

Just under half (46%) of those postgraduate students who said that the cost of tuition fees had affected their study decisions said that they would not have studied without funding, higher than the 31% of HN/undergraduate students who reported this. Around a third reported that the cost of tuition fees had affected their decision to study full-time or part-time (36%) and their decision about what university to attend (32%). Around one-fifth reported that the cost of tuition fees had affected their decision to study in Scotland (22%); affected their decision about what course to take (20%); affected their decision about when to start their course (18%); and affected their decision of whether to study at a nearby university (17%).

10.6.3. Students from under-represented groups

Similar to both HN/undergraduate and postgraduate students, 45% of students from under-represented groups who were paying tuition fees reported that the cost of tuition fees at their institution had affected their study decisions; with those aged 20 to 24 (62%) more likely to say this than those aged 25 and above (44%).

Among those who reported that their study decisions had been affected by the cost of tuition fees, almost half (48%) stated that they would not have studied without funding. Over a third (35%) of students also reported that the cost of tuition fees affected their decision whether to study full-time or part-time, and 29% reported that it affected their decision about which college or university to attend. Around one-fifth reported that it has affected their decision to study in Scotland (21%); what course to take (21%); and when to start their course (19%).

10.7. Student experiences of finances impacting on study decision making

There were several ways in which finance was said to have influenced the study decisions of students who took part in the qualitative research. Finance is just one of a multitude of different factors which can influence students' decisions as to whether to study; at what level; mode of delivery and location of institution. Whilst financial issues did not play a key role for some students in where and how they studied, for others it was critical either in encouraging them to study, or in selecting which university or college to attend.

10.7.1. Finance had little impact on study decisions

In the qualitative interviews and focus groups, there were students who said that financial issues had little or no impact on their study decisions. These students instead prioritised their desire to retrain, return to studying or achieve a qualification over any financial challenges that they might have encountered. For example, some student nurses said the bursary had not influenced their decisions to study nursing or midwifery; rather, it was viewed as an additional bonus rather than the reason to study that subject. Among student parents, the desire to better themselves and their families by finding a fulfilling career was key to their decisions. However, they discussed how they were nonetheless restricted in where they could study by their parenting and childcare responsibilities.

"Previously I'd been a care worker and wanted to be a midwife when I was a lot younger. […] I need a career. I'm sick to the back teeth of living off a basic wage. It's not feasible and I just wanted something that was mine, something that I've created myself to get myself somewhere. That was more of my focus, so it wasn't actually anything to do with obviously not paying the loan back. (Student parent focus group)"

"That was more about the course than the cost you know. It was the only university that offered this course. So looking at other universities and the cost of the other universities was never a thing. (Part-time postgraduate (Masters) student carer)"

Students also highlighted ways in which elements of their decisions as to where and what to study were not within their control, which had varying impacts on their finances. Several part-time HE students were funded by their employer, with their course a requirement of their employment. Some FE students had their decisions affected by their colleges. For example, one student was only notified a week before their course was due to start that the course numbers had been cut and they had to find an alternative college and course. The student noted that their first choice of college had been more supportive of the financial challenges they experienced than the college they then had to enrol at. Another FE student was told they had to undertake an English for Speakers of Other Languages (ESOL) qualification before they would be considered for their chosen course, despite them speaking fluent English. This extended the length, and subsequently the living costs which had to be covered, of the student's learning.

10.7.2. Decisions to enter/return to study

Among students aged 25 and over who participated in the qualitative research, there was a mix of those who had never studied before and those who returned to study either to facilitate a career change or progress their career. Some students spoke of feeling dissatisfied with their careers and looking for a change. Others mentioned that being made redundant had prompted their return to study. Parents and carers also expressed a desire to take time for themselves and to undertake something which they found intellectually stimulating. A key theme among all these students was a desire to better themselves and gain financial stability through studying. Despite this, students who had been in full-time employment prior to study raised concerns about their reduced incomes as students. For some, this created financial anxiety about how they would manage on student loans and/or bursaries and paid work.

"My husband had a period of quite severe ill health that has made him unable to work, so it's partly looking to give us some financial security for the next few years, but also because I thought with him being unwell and me being his carer for quite a lot of the time, I needed to do something that was for me and would stimulate me and that I'd really enjoy. (Full-time undergraduate student parent and carer)"

"I did always want to go back and study something different, but it was the finances that were - caused me a bit of apprehension. Leaving full-time employment, maybe going into part-time employment to study, it can create a lot of financial anxiety. (Part-time HNC/HND student)"

10.7.3. Decisions to study full-time or part-time

Finance influenced some students' decisions to study full-time or part-time courses. This was particularly the case for those who were enrolled on part-time HN/undergraduate or postgraduate degrees. Part-time students explained that their decisions to study in this way were partly influenced by their need to continue earning while they studied, noting that they would not have been able to afford to stop working full-time. Some part-time students also needed to balance paid work and studying with caring responsibilities.

"I could only do the Masters because it was part time. I would've loved to sortae done my bachelor's and went full time, but I couldn't afford to just jack working and go full time. (Postgraduate student focus group)"

"I think [the part-time HE course] gave me the chance to learn at the same time I can work, so I can accommodate my children's needs in between studying and working. So, it's hard at times but I think it's just my nature; I like pressure and it's hard, but I enjoy what I do so I think that helps. (Part-time undergraduate student parent)"

Eligibility for financial benefits and support also impacted on students' decisions to study full- or part-time. One student explained they had opted to study part-time so that they could continue accessing their benefits. The majority of income-assessed benefits (aside from those available for parents and those with disabilities) are not available to full-time students. By contrast, a full-time FE student explained that they had chosen a full-time course on the basis that they would be entitled to additional financial support, such as reduced council tax and the FE bursary, neither of which are available to part-time students.

"No, I can honestly say that my study options were decided by the benefits system in so far as I can only study part-time. So that was an impact. (Part-time undergraduate student carer)"

"I did think about doing part-time, but realised that financially, it would actually be easier to do full-time. The thing is, with my council tax going down as well, that helped, and also the fact that I have the ability to get a bursary. You can't get part-time bursaries, which kind of sucks. (Full-time FE student)"

10.7.4. Decisions to study locally

Finance also influenced students in terms of the geographic location of their college or university. Some students studied locally on the basis that it was cheaper for them to remain living at home and commute to college or university than to pay for university owned or privately rented accommodation. Others selected universities based on the perceived cost of living in different cities. Accommodation in Glasgow, Edinburgh and St Andrews was viewed as being particularly expensive compared to other Scottish university towns and cities.

"Money does influence it to an extent. […] I chose [city] to an extent because it's a cheaper city to live in than say Glasgow or Edinburgh. (Full-time undergraduate student)"

"For me, the closer to home, the better, because of expenses. I didn't have much of a support network at home. […] [Name of university] is a half-hour walk from home, but to put myself in the undergraduate position, the closer to home, the better. Literally, the cost of the train ticket was an influence. Literally, the cost of coming and going to university was a major factor. (Part-time postgraduate (Masters) estranged student)"

However, students did not always choose to study locally for financial reasons. Other factors included the desire to remain close to family and friends, parenting and caring responsibilities, or because their local institution offered their preferred course. Students spoke of wanting to study close to where they lived, while others needed to study locally as they had young children in nursery and needed to be nearby. Among FE students in particular, it was not always clear why students made their decision to study at the local college, with the decision to study locally often presented by students, not as a choice, but as the only available option.

10.7.5. Institution chosen on the basis of financial support available

The financial support offered by institutions influenced study decisions of some students. For example, university-funded scholarships for students from low income households played a role in students' university decisions. A student in receipt of a scholarship explained that they chose their institution on the basis that it offered funding which enabled them to move away from home. Without this, they would have chosen a different university, and consequently a different course, so as to stay with family, and reduce costs, while studying.

"If I hadn't received it [scholarship], I would've ended up studying in [another city] - staying with some family. I would've studied a different course altogether, so it really has totally changed the trajectory of my life […] Having that [scholarship] has really changed my career path, I would say, which is quite incredible, I think. (Part-time HNC/HND student)"

Furthermore, there were care experienced students who said they had selected their university on the basis of the targeted financial support offered by the university to care experienced students. However, this support was balanced against the financial support they could receive from their local authority. There were care experienced students who felt they had to remain in their local authority area in order to be able to continue accessing financial support for housing through their council rather than moving to a neighbouring area which would have been nearer their university campus.

10.7.6. The influence of tuition fees on study decisions

Among undergraduate students, the cost of fees in different parts of the UK, and conditions attached to residency around the entitlement of free tuition in Scotland, also influenced study decisions. A small number of students had not lived in Scotland for the duration required to be eligible for home fee status from their institution and be able to apply for a tuition fee grant to cover tuition costs. This meant they worked for a time before enrolling on a university degree programme to ensure they met the residency criteria in order to be eligible for free tuition. Some undergraduate students also spoke of how they had ruled out studying at universities in the rest of the UK to avoid the payment of fees.

Fees were one of a range of factors which influenced decisions to study at postgraduate level. Some postgraduate students who graduated from their degrees in 2020 during the COVID-19 pandemic spoke of the lack of employment opportunities at that time, opting to enrol on postgraduate courses as a means to expand their skillset, experience and maximise their employment chances. Others returned to study at postgraduate level in response to redundancy. Those who wished to study at postgraduate level said the availability of funding (such as UKRI studentships) and the cost of tuition influenced whether they felt able to study at postgraduate level and which institution they decided to study at. Students' choices of university were influenced by the availability of fee waivers or alumni discounts which helped the decision on which institution to attend.

"I was part of the graduate year of 2020 so there weren't many jobs going around then, so I saw [University] were offering a two-year conversion to degree in [subject] with an alumni discount as well, which really helped with finances. So, that kind of persuaded me to go back, and then when I finished that, there were a couple of job offers out there. But there was nothing really attractive, let's say, that really caught my eye. So, then through connections I got offered a PhD position. (Postgraduate student focus group)"

The cost of tuition for specific courses at various universities also played a role in students' decisions. Some postgraduates chose their institution on the basis that it cost less than studying elsewhere. Masters students in receipt of tuition fee loans administered by SAAS on behalf of the Scottish Government noted this did not always cover the full fee charged, with some opting for a less costly course and/or university in order that they had to fund a smaller proportion of fees themselves.

"I was looking for a Masters course, and I did consider ones in London, but they were way too expensive. So I picked the one at [Scottish University]. I did apply for [another Scottish University] as well, but [their] courses, there's a bigger jump between what you can get in funding and what you have to pay yourself. (Full-time postgraduate (Masters) student)"

"When I was applying for a postgrad, I applied to maybe about ten institutions across the country. I got into every single place I applied for, but it came down to money, at the end of the day. You would owe up to £20,000 out of your own pocket for some of the top places, for humanities-based subjects. A first-class undergrad doesn't automatically mean you'll get funding for your postgrad study, even if you are top of your field. So, my choice of programme came down to what I could actually afford and what could be funded. (Postgraduate student focus group)"

10.7.7. Future educational and employment decisions

Finance also influenced students' decisions about whether to progress their studies at a higher qualification level or to enter employment. Students who decided to leave FE/HE and go into employment after they finished their course were doing so because they wanted more financial stability and to be able to live off a higher level of income than was possible while studying. While some students looked forward to moving into employment at the end of their course, there were others who would have liked to continue their studies but could not afford to do so. For example, some FE students opted to move into employment rather than progress their studies due to the expense associated with further study.

Without securing funding some students felt unable to progress to a higher qualification level and instead opted to work to build savings before returning to their studies. For example, a student expressed uncertainty about progressing from their HND to a degree because they were unsure how much funding they would receive from SAAS because of previous qualifications held.

"I am worried about what SAAS will and won't cover because I've done the City & Guilds qualification but I'm not sure what level that sits at, it's hard to find out. […] I will have to think about whether or not I'll have to pay for the last year of university and that sort of thing but…yeah it will be a bit of saving up I think when it comes to it. (FE student focus group)"

Students who wished to progress to a Masters degree discussed the limited funding options available for those hoping to study at this level which they said may put them and other students off from continuing with their studies. Masters students who were considering progression to PhD study also worried about the lack of funding options for PhD programmes, noting that they could only undertake a PhD if they had funding from a UKRI studentship or scholarship. The value of PhD funding was also a consideration, with students negatively comparing stipends with the cost of accommodation and wider living costs.

"I would only also do it if it was going to pay me an actual reasonable wage, and a reasonable wage based on the city. (Full-time postgraduate (Masters) student)"

"I think the course that I want to do, if it wasn't fully funded and if there wasn't a bursary, it wouldn't be possible, I don't think, unless I took a larger gap in between to save up to fund it. (Full-time undergraduate estranged student)"