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

13. Impact of finances on physical and mental health and wellbeing

In addition to asking students to identify the impact that financial difficulties had on them (including on worry and stress), the survey also explored the extent to which financial difficulties had affected students mental health and wellbeing. Students were asked in the survey the extent to which financial difficulties had affected their mental health and wellbeing, with answer categories 'a great deal', 'a fair amount', 'a little', 'not at all' and 'not applicable – I have not experienced financial difficulties while studying'.

13.2. Key findings

• Although between 10% and 16% of the four student groups said they had not experienced financial difficulties whilst studying, around a half to three-fifths reported that financial difficulties during their studies had affected their mental health and wellbeing either 'a great deal' or 'a fair amount' (46% of HN/undergraduate and postgraduate students, 54% of FE students, and 60% of students from under-represented groups).
• FE, HN/undergraduate and students from under-represented groups who were female were more likely than their male peers to report that financial difficulties had affected their mental health and wellbeing either 'a great deal' or 'a fair amount'. FE, HN/undergraduate and students from under-represented groups who lived in the 20% most deprived areas were also more likely than those who lived in other areas to report that financial difficulties had affected their mental health and wellbeing either 'a great deal' or 'a fair amount'.
• The qualitative findings show how being financially stable or comfortable (often as a result of financial support from family) had a positive impact on student's mental health.
• However, for students who could not afford basic essentials, financial stress was considerable and impacted on academic achievement, ability to socialise and their overall mental health.

13.3. FE students

Around half (54%) of FE students reported that financial difficulties during their studies had affected their mental health and wellbeing either 'a great deal' or 'a fair amount'.

Certain groups were more likely to report that financial difficulties affected their mental health and wellbeing. Female FE students (60%), those aged 25 and over (61%) and those with no parental experience of HE (62%) were more likely than male FE students (38%), those aged 16 to 19 (47%) and those with parental experience of HE (45%) to report that their mental health and wellbeing had been affected 'a great deal' or 'a fair amount'.

Two-thirds (66%) of those living independently (renting or with a mortgage) said that financial difficulties had affected their mental health, compared with 41% of those living with their parents. Similarly, there was a statistically significant difference between FE students from the most and least deprived areas, with 64% of those from the 20% most deprived areas reporting that financial difficulties had affected their mental health 'a great deal' or 'a fair amount' compared with 49% of those from the 80% least deprived areas.

13.4. HN/undergraduate students

Overall, nearly half (46%) of HN/undergraduate students reported that financial difficulties had affected their mental health and wellbeing 'a great deal' or 'a fair amount'. This did not differ by full-time or part-time status.

The characteristics of HN/undergraduate students who reported that financial difficulties had affected their mental health and wellbeing were generally similar to those of FE students.

The findings showed that those students who were more likely to report that financial difficulties had affected their mental health and wellbeing 'a great deal' or 'a fair amount' were:

• female students (48%, compared with 41% of male students)
• those aged 20 and over (49% of those aged 20 to 24 and 54% of those aged over 25 compared with 34% of those aged 16 to 19).
• those with parents who had no higher education experience (53% compared with 40% of those whose parents had higher education experience.

Additionally, HN/undergraduate students from the 20% most deprived areas (62%) were more likely to report that facing financial difficulties had affected their mental health and wellbeing 'a great deal' or 'a fair amount' than those living in the 80% least deprived areas (42%). There were also differences by accommodation type, with students who were living independently (renting or with a mortgage) more likely than those living with their parents (50% and 36%, respectively) to report that facing financial difficulties had affected their mental health and wellbeing 'a great deal' or 'a fair amount'.

13.5. Postgraduate students

Around half (45%) of postgraduate students reported that financial difficulties during their studies had affected their mental health and wellbeing 'a great deal' or 'a fair amount'.

Unlike FE and HN/undergraduate students, the proportion of postgraduate students who reported that financial difficulties affected their mental health and wellbeing 'a great deal' or 'a fair amount' was not significantly different by sex, age, whether the students' parents had experience of higher education, accommodation type, or area deprivation.

13.6. Students from under-represented groups

A higher proportion of students from under-represented groups compared with either FE, HN/undergraduate or postgraduate students reported that their financial experiences had impacted on their mental health. Around 3 in 5 (60%) students from under-represented groups reported that financial difficulties had affected their mental health and wellbeing either 'a great deal' or 'a fair amount', with females (62%) more likely to report this than males (53%).

Around two-thirds (67%) of students whose parents had no HE experience reported that financial difficulties had affected their mental health and wellbeing 'a great deal' or 'a fair amount', compared with around half (53%) of students whose parents did have HE experience. Those living independently (renting or with a mortgage) were more likely than those living with their parents to report financial difficulties had affected their mental health and wellbeing 'a great deal' or 'a fair amount' (64% and 49%, respectively). A higher proportion of students from the 20% most deprived areas (71%) reported that financial difficulties had affected their mental health and wellbeing 'a great deal' or 'a fair amount' than those from the 80% least deprived areas (56%). There were no statistically significant differences reported between different age groups.

13.7. How financial circumstances impacted on physical and mental health and wellbeing

It is clear from both the survey and qualitative findings that students' financial circumstances affected their physical and mental health and wellbeing, both positively and negatively. The qualitative findings provide some insight into how student's physical and mental wellbeing was impacted by financial circumstances.

13.7.1. Positive impact of finances on students

There were students who participated in an interview or focus group whose mental health was positively impacted by their financial circumstances. This was because they felt financially stable or comfortable. For some, this meant that they had enough money to cover their basic expenses such as accommodation, food and utilities, which relieved financial worry and stress. For others, financial stability meant having not only enough money to cover basic expenses, but also enough money to save and/or take part in activities that promoted their physical and mental health such as exercise, social activities and, on occasion, holidays. For some students this was facilitated by regular financial contributions or support from family such as a parent or partner, often in addition to other sources of income. For others, this was by support from their college or university, for example, the provision of free gym membership, which had a positive impact on both physical and mental health.

"It's definitely very valuable to not have to stress about finances whilst studying because, yeah, studying is a fairly stressful thing on its own anyway. So to have to worry about where you're going to get the money for rent that would be quite a lot so, yeah, thankfully, I haven't had to worry about that. So I haven't had any problems with stress or mental health due to finances. (Full-time undergraduate student)"

"I actually didn't apply for that one [gym membership]; the university just gave it to me, which was pretty incredible. I'd say that as well was a huge relief because I didn't think that it would be such a big thing until I came to the university and I realised health and well-being is such a huge part of being a student. You need to keep track of these things; otherwise your entire, like, existence falls apart, falls to pieces. Yes, that was incredibly helpful. (Part-time HNC/HND student)"

Receiving regular financial support had a perceived positive impact on some students' mental health. For example, there were students who received enough money through scholarships, UKRI PhD stipends, bursaries or family contributions which meant that they did not need to work while studying to financially support themselves. This had a positive impact on students' mental health because they could focus on studying and had more time for socialising or with their family.

"[Financial support from parents] I'd say it makes it a lot easier. It's never a concern I have. It helps all aspects of it. I can buy paper copies of things and that's fine. I can go out with friends and have a good time, and I don't have to sort of be like, oh, maybe I should drop out of this one, I've got to save for dinner. Just the fact that I don't have to worry about rent or utilities or anything, it's like a massive worry that I don't have. (Full-time undergraduate student)"

Having sufficient income to cover expenses and not work was also beneficial for disabled students and students with long-term conditions as it lessened physical and mental strain. Disabled HE students, who were eligible, reported that their mental and physical health were also supported by receiving Disabled Students' Allowance funding for equipment, software and other forms of support in their studies.

"Do you know what that [DSA] was really good because some of the specialist stuff is much more expensive […] being able to have the equipment to be able to sit in my bed and do some work…again without it impacting on how I'm holding the computer or whatever has been great. […] the stuff that I got from the [DSA]; I wouldn't have been able to pay for some of that. I wouldn't have been able to justify it. […] I'd have probably been in absolute agony still going through the course. (Part-time postgraduate (Masters) student carer)"

For some students, the government or institutional support they received was sufficient so that they did not need to rely on receiving or borrowing money from family. This had a positive impact on students' mental wellbeing because they felt more independent and it relieved any guilt from asking for money from family. This was most pronounced for students from low income families (as illustrated in the following section).

13.7.2. Negative impact of finances

In the same way that having enough money to pay for expenses had a positive impact on students' physical and mental health and wellbeing, not having enough money was reported to impact negatively on health.

Students from all levels of education stated that they worried about having enough money to pay for essentials such as food, utility bills and accommodation costs. While some students only worried about money occasionally, for example when there were unexpected expenses, for others financial stress was constant. There were FE and postgraduate students who worried about being able to pay their tuition fees and were anxious about being forced off their course if they could not afford them. Feeling stressed about money was reported to impact on academic achievement and overall mental health, especially during more intense periods of study.

"Oh it [unexpected payments] sends me into a great stress and my mental health goes crazy and I start panicking. [… ] If I'm worrying about money, I'm just super, super stressed and I can't really think about anything apart from (A) trying to sort it out the money or (B) trying to get around not having any money and it kind of takes my attention away fae everything else. (Full-time FE care experienced student parent)"

"So it had a really bad impact on my mental health. I have bad spouts of anxiety sometimes, so I was having quite intense panic attacks about money, and then also subsequently quite intense panic attacks about my workload. I'm obviously fortunate that my mum offered to help with that, but if she hadn't, then I would have been in a bit more of a bad mental state. (Full-time postgraduate (Masters) student)"

To ensure they had enough money to pay for essentials, some students worked while they studied (see Chapter 6). While this relieved financial worry and stress, balancing work and study could have other mental and physical health impacts. Students stated that working while studying could make them feel mentally and physically drained. This was further exacerbated for students with caring responsibilities. For some, being mentally and physical exhausted also impacted on their academic achievement, which in turn had a detrimental impact on their mental health.

"To be honest, I'm exhausted. I prefer to focus on my study and have more time for me, but if I don't work, that money won't be enough for us to live. […] it's not easy to combine study and work because sometimes I am so tired and I couldn't focus. Still, I can manage because I passed most of the things in first block, which is good and I am satisfied. (Full-time FE student parent)"

"It's impacting on my grades a bit, not substantially because I'm really trying my hardest but then at the same time because I'm trying my hardest, I'm trying to balance everything, it does also affect the mental health aspect. You're just drained because you finish work and then you're having to come in and study at the end of the day when you're already exhausted. [..] I think it's just the aspect of mental health and then how it affects your grades and you've got less time to study and things like that. (Full-time undergraduate student)"

As outlined in Chapter 8, there were students who had to borrow money from family or friends to pay their bills. This was thought to have a negative impact on their mental health as they felt guilty having to borrow money and could feel anxious about their ability to pay it back. Not all students were able to borrow money from friends and so they built up debt through different types of commercial credit which had further negative impacts on their mental health.

"I'd say it's [debt] probably my biggest worry at the moment. It's one of those things that keeps you up at night. I definitely didn't think I'd be in this position. They always tell you, they'll say, 'Oh, it sneaks up on you,' with debt and things like that, but you never think you're going to be the person to fall into all this credit card debt and things like that. They warn you for a reason. (Full-time postgraduate (Masters) student)"

Furthermore, it was common for students in the qualitative research to say that they did not have money for social activities and socialising, which led to some students feeling isolated and lonely. Some students were unable to afford to travel to visit their family or partners as often as they would like, all of which had a negative impact on their mental wellbeing.

"It's not just the social life, but I've not seen my family since August, and my family are only like a half-an-hour drive away. I see my mum every so often but the rest of my family are out towards [city], so it's that as well, you know? You don't even get your family to see you or help or anything like that, so it's very hard, especially when you were very, very close to your family as well. (Student parent focus group)"

Students with pre-existing physical and mental health conditions said that being stressed about money could trigger these pre-existing conditions, causing their physical and mental health to deteriorate. This, in turn, led some students to miss classes, resulting in further anxiety about studying. For some students in receipt of FE bursaries or EMA, missing classes resulted in reduced payments or the removal of their bursary completely as a penalty, pushing them further into financial difficulties.

"Say if you're off for a singular day, it'll basically dock a week off your bursary. I think it isn't all that fair because obviously I had a doctor's appointment and I wasn't feeling well that day, and then I woke up that day with a migraine. But I still tried to work remotely, obviously. I was just trying to get the college work done so I think, say if they could put down as absent but engaging or working remotely, it would be great because it would make a lot more sense than just docking an entire week off if it's a valid reason. (Full-time FE student)"

Students without familial financial support thought that their financial anxiety was heightened because they did not have a safety net to fall back on. This included estranged students, students from low-income households and some care experienced students. These students relied on income from the government, their institution and paid work to support themselves. Students who relied on the income from bursaries and loans talked about the stress and anxiety they experienced applying, and waiting to hear if they were successful. Estranged students shared that they found it emotionally draining being required to reapply for discretionary funding every year, despite their circumstances remaining unchanged. Restating and providing evidence of their estrangement negatively impacted on their mental health.

"I think part of where it [finances] would stress me out the most and have me the most worked up, is just applying for the [discretionary] funding every summer because it's… Even though I know I've been lucky enough to have it every year, it's just the worry of, 'What am I gonnae do if I don't get this?' So, it is a lot of worry and stress and does keep me up, because when I'm stressed I don't sleep properly. So, it's quite a few sleepless nights until it's - until I get the yes, which then impacts everything else. (Full-time undergraduate estranged student)"

"Money is on my mind. […] Regardless of what I save or whether, logically speaking, I'm in a comfortable spot or not, it always feels tight. It always feels like the moment something goes wrong or an emergency happens, I'm going to be completely f*****. […] being an estranged student, I think financial worries impact me more than they impact, in general, people who are not estranged students. Simply because […] there is no safety net of people who are supposed to unconditionally be there. They aren't there. So we have not got that net. (Estranged student focus group)"

It is important to note that even students who were coping financially were not immune from feeling stressed and anxious about money. Rising costs of food, utilities, accommodation and petrol resulted in students feeling anxious about their ongoing financial stability. Students who relied on working while studying to meet their expenses were concerned about how they would balance working and studying as they progress into their final years of an undergraduate or postgraduate course in which academic burdens are greater. Students coming to the end of their studies were also anxious about finding a job in what they perceived to be a difficult job market.