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

16. Students' views on suggested improvements to funding and support

In the follow-up qualitative research with students, interview and focus group participants were asked how they felt students' financial experiences could be improved in the future. This section outlines the suggestions put forward by students by the key themes raised.

16.1. Increase overall income for students

The most commonly espoused improvement was to increase students' overall income. Students from all qualification levels and diverse backgrounds highlighted what they perceived as the inadequacy of government-funded education-related income (bursaries and/or student loans) in meeting the basic costs of currently being a student. Students suggested a range of ways that they felt could potentially improve the overall income of students in the future.

16.1.1. Increased government funding for students

• There was a view among some HN/undergraduate and postgraduate students that bursaries should be increased, while the proportion of financial support provided by SAAS on behalf of the Scottish Government in the form of student loans should be reduced. This would help to alleviate financial anxiety associated with student loans for some students, especially estranged students who, in this study, were particularly concerned about student loan debt.
• In contrast, among some eligible students (full-time HN/undergraduate and Masters students), there was also a desire for student loans to be increased to allow students to cover essential living costs.
• Some students enrolled on qualifications currently ineligible for student loans such as FE students and those enrolled on part-time HN/undergraduate courses said they would like to be able to access student loans. It was felt that expanding student loan eligibility could have benefits for some groups of students in terms of reducing financial anxiety and/or reducing the need for paid work whilst studying. However, other FE and part-time students expressed worry at the thought of taking on student loans.
• Students suggested increasing non-repayable bursaries to make them equivalent to the Living Wage to increase students' income.
• Young students (aged under 25) whose parents could not afford to provide any financial support suggested that eligibility for income-based bursaries and student loans should be based on their own income, not that of their parents'.
• Students (including nurses and those enrolled on other allied health courses) whose courses involved mandatory work placements, which could limit the amount of paid work they could do, suggested that increased financial support for students on work placements should be provided. This was particularly noted by the nursing students who took part in this study, but may also be relevant to other courses which required work placements.

Since undertaking the qualitative research with students, the Scottish Government has introduced a Special Support Loan for academic year 2024-2025. This will increase the overall package of support for some students through the provision of additional student loan funding. This will make the package of support available to care experienced and estranged students equivalent to the Living Wage of £11,400. However, it should be noted that this package of support is based on the provision of a student loan of £2,400, rather than non-repayable bursaries which was what many participants in this research called for, especially those who were estranged or care experienced. As this package was announced in the middle of the research, we were unable to explore students' views on this.

16.1.2. Introduce summer funding instalments

Students across qualification levels and from a wide range of backgrounds called for the introduction of a summer bursary and the spread of student loan instalments for all students across the summer break. It was felt that this would reduce the financial hardships experienced by students, especially those who are estranged, during the summer months. From the 2024-2025 academic year, all eligible full-time HN/undergraduate students will have the option to choose whether to receive their funding payments from SAAS over term time or to spread these payments over the year (12 months). However, this offer was not in place at the time of the research, and students were not asked directly how they might feel about receiving the same income spread over a longer time period.

16.1.3. Increase access to social security benefits for students

• Students at all levels suggested that eligibility to claim a wider range of social security benefits could be extended to include full-time HN/undergraduate students to increase their income. Less information was provided on whether this would be for all HE students or those students who may be eligible for benefits.
• FE students suggested improved communication on the relationship between Universal Credit and the FEB 'top up' provided by colleges. They felt that this could help to ensure students can access the maximum amount of funding they are eligible for.

16.1.4. Increased funding for scholarships

• Students highlighted the positive role of scholarships and called for universities to make more scholarships available especially those which provided support with living costs.

16.2. Suggested improvements for specific groups of students

Students from specific groups which receive targeted funding, and some who do not, also suggested a range of ways that their financial support and experiences could be improved in the future.

16.2.1. Postgraduate students

Several suggestions for financial improvements for postgraduate students related to increased funding:

• Masters students from a range of backgrounds suggested that the tuition fee loans from SAAS should be increased to cover the majority of tuition fees, whilst at the same time increasing the living cost loan element to provide students with additional income to live.
• At PhD level, students suggested it would be useful if the availability of UKRI studentships was increased, particularly in the Arts and Humanities. Some PhD students also suggested that it would be helpful to introduce a PhD student loan.
• For both Masters and PhD study, students expressed the view that postgraduate funding, including UKRI stipends, should be increased, to reflect the increased academic demands of postgraduate study which can make it more challenging to undertake paid work whilst studying.
• Students also called for the introduction of some form of means-tested non-repayable bursary support to enhance equality and ensure those from the lower incomes are not deterred from postgraduate study.

16.2.2. Improved access to financial support for part-time students

There was a view among some part-time students that information about, and communications on, the financial support available to part-time HN/undergraduate and postgraduate students is lacking. More information on fee waivers and the availability of any bursaries for part-time students was requested. Part-time students also highlighted the need for more financial support in the form of bursaries and loans.

16.2.3. Estranged students

Estranged FE and HN/undergraduate students in this study faced considerable levels of financial hardship and stress. They identified several ways that their financial experiences could be further improved:

• They called for the estranged student bursary in HE to be increased. This would help to reduce estranged students' anxieties about student loans, reduce the amount of paid work needed to be undertaken and reduce their reliance on discretionary funding from their universities and colleges.
• They also called for the introduction of summer SAAS/FEB payments for estranged students to help tackle the challenge of funding summer accommodation. The ability for students to receive the support they are eligible for over 12 months, including over summer, has since been introduced but was not available when this research was conducted.
• Finally, estranged students called for improvements to discretionary funding in particular the evidence needed for applications. They noted that reducing the frequency with which they are asked to provide evidence and/or apply for discretionary funds to their institutions would alleviate some of the stress they experience.

16.2.4. Care experienced students

Care experienced students highlighted the considerable positive impact of the CESB, while also pointing to elements of their support which could potentially be improved further:

• It was suggested the CESB should be increased, or additional support provided for care experienced students' accommodation costs (on top of the summer accommodation grant), to address the fact that the bursary was considered insufficient to meet all of their financial needs whilst studying. The Special Support Loan made available to care experienced students and others in 2024-2025 were announced after the research was undertaken and therefore, this study was unable to explore students' views of these. It should be noted, however, care experienced students were often highly debt averse and appreciated the support in the form of a full bursary with no student loan package.
• Care experienced students called for improvements to be made in terms of the information, advice and guidance on eligibility for funding and support provided to prospective students from care experienced backgrounds, particularly that provided by social workers to young people in their care. Some called for the introduction of advocacy workers to signpost care experienced students to potential funding. This would help to improve awareness of the full range of support available such as the care experienced summer accommodation grants.
• Care experienced students also suggested that the years of allocated funding provided by SAAS on behalf of the Scottish Government should be extended for care experienced students who may take longer to find the right course as a result of their circumstances.

16.2.5. Student Carers

It was also recognised that student carers face additional financial challenges compared to other students. To address this, some student carers suggested:

• Incomes, either via student loans or a dedicated bursary, should be increased for student carers, in light of the fact that they may be unable to undertake paid work as a result of caring responsibilities alongside their studies.
• Distinct discretionary funding made available specifically for carers to ensure they do not have to compete with other students to access discretionary funding. Despite student carers being considered a priority group for accessing HE discretionary funds, student carers in this study highlighted the limited nature of discretionary funding.
• It was also proposed that attempts should be made to raise awareness of the lived experiences of student carers among college and university staff. More information on the financial challenges facing carers was seen as valuable by students in improving understanding and awareness among lecturers and college and university staff.

16.2.6. Student parents

• Among student parents there was a desire for recognition of the higher costs associated with raising a family while studying. Student parents called for increased levels of funding to be allocated to help them to help them to support their families.
• There was also a desire for people's family responsibilities to be taken into account, where possible, when allocating financial support, in recognition of the higher costs they have to cover as parents with children.

16.3. Suggested improvements to raise awareness

A key barrier to students being able to maximise the income they are eligible for from the government or from their college or university was a lack of awareness of what support is available and for whom. Students' suggestions on how the information available could be improved are outlined below.

16.3.1. Improve information, advice and guidance for students on finance

• A common suggestion was the need to improve financial information, advice and guidance for students provided by the Scottish Government, SAAS, secondary schools, colleges and universities. Their overall experience was that it was difficult to find clear information on these websites on what they were eligible for.
• Students also called for better and clearer communication, for example, from school teachers to prospective students as to how changes in interest rates may impact the total loan debt that has to be repaid.
• It was suggested that presentations at student inductions or regular email newsletters could help colleges and universities to raise students' awareness of the available bursaries, their value and eligibility criteria, for specific groups.

16.3.2. Improve communication from SAAS, colleges and universities

A lack of awareness amongst some students of the financial support available to them limited their access to funding that they may have been eligible for:

• Students said colleges, universities and SAAS could communicate better with students in receipt of a bursary/loan to ensure they understand the support they receive, their entitlements, payment schedule etc. to help them plan and manage their finances.
• When a student is refused a particular form of finance on the basis of eligibility, students wished to see more transparent appeal processes to help them better understand why their application was refused and on what grounds. This was particularly the case among estranged students (both FE and HN/undergraduate), some of whom had been denied specific support after the evidence they had provided had been deemed insufficient.

16.3.3. Improve awareness of discretionary funding

Both the survey and the qualitative research found that the support available from discretionary funds was not well known among students:

• Students called for institutions to better communicate discretionary funding. Some expressed concern that funds may be underpromoted due to limited funding and called for increased funding to be allocated to institutions, given the importance of the discretionary fund as an emergency means of financial support.

16.3.4. Budgeting and debt management support

Students did not feel well equipped to manage their finances, especially those who were care experienced, estranged and/or carers.

• Students suggested additional support could be provided by colleges and universities to help students understand how, and potentially assist them, to manage their finances. They suggested induction classes on relevant financial topics to help them better understand the practicalities of budgeting and debt management (including on interest rates).

16.4. Suggested improvements on the administration of funding

To counter some of the perceived barriers related to funding application processes and the administration of bursaries/loans, students made several suggestions that they felt would help:

16.4.1. Application processes

• Offer support to assist students with finance applications (e.g. bursaries, student loans, discretionary funding) to help ensure these are correctly completed and reduce delays in receiving payments thereby minimising financial stress and hardship.
• Estranged students who complained about having to provide the same evidence of their estrangement each year they applied for discretionary funding, called for the frequency of having to provide the same proof to be reduced to alleviate financial anxiety and fears of instability in accommodation.

16.4.2. Administration of funding

• Some HN/undergraduate students were supportive of increasing the frequency of student loan/bursary instalments to weekly or fortnightly instalments on the basis that they felt it could make it easier to manage finances. Others were supportive of providing current levels of support across 12 instalments rather than 10 to help students budget in the summer. As outlined above, this option has since been made available to all students in 2024-2025. However, we were unable to explore with students their views of receiving the support they were eligible for over a longer time period.

16.4.3. Attendance requirements for FE bursaries

The reduction or removal of FEB or EMA payments experienced by some students in this study exacerbated the financial stress experienced by these vulnerable students (those who were estranged, had mental health issues or disabilities, parenting responsibilities, or those who could not afford to travel to college). SFC Student Support guidance for colleges states that any decisions relating to the reduction, or removal, of FEB should be based on student engagement, not student attendance. In spite of this, students enrolled at a range of different colleges reported the experiences they shared with the study.

• Students called for colleges to be more understanding of students' individual circumstances and for these to be taken into account when assessing whether FEB or EMA should be reduced or removed.
• It was also suggested further training for college staff on how students' experiences may impact attendance could be helpful.

16.5. Suggested additional improvements on food, travel and accommodation

Finally, students also suggested several other ways that their finances could be improved indirectly:

• Several colleges and universities attended by students in this study provide a small offer of free food (such as porridge or one type of soup) at specific times of the day or week to all. It was suggested that this was a key means of assisting students who may not be able to afford to buy lunch when they are on campus. Students called for more colleges and universities to provide a similar option where possible to help tackle student poverty.
• The benefits of the free bus travel policy for under-22s were also acknowledged by students participating in this study. It was felt that by expanding this to include students of all ages it would further impact on students' financial wellbeing, reducing the amounts that they have to use to fund their commutes to college and university.

Students also made suggestions that they felt could help to tackle the costs of student accommodation. These included improved access to student housing through the reduction of short-term let holiday properties in student towns, the building of more student housing to help relieve some of the cost pressures on students, and increased offers of free or reduced cost university-owned accommodation.