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

4. Tuition fees

4.1. Introduction

Eligible Scottish-domiciled further education (FE) and higher education (HE) students (including those enrolled on Higher National courses) have their tuition fees paid by the government, either directly through their college or through the Student Awards Agency Scotland (SAAS) on behalf of the Scottish Government.

Part-time students in FE do not receive support for their tuition fees, though there are some fee waivers available for those on a low income, with a disability, and/or receiving certain benefits. Part-time HN/undergraduate students may be eligible for a Part-Time Fee Grant (PTFG) from SAAS, depending on their personal income and their course of study.

Funding for postgraduate tuition fees is dependent upon the type of qualification. Students enrolled on Postgraduate Diploma and Masters level courses are eligible for a tuition fee loan from SAAS of up to £7,000, which is paid directly to their institution. Students enrolled on PhD or doctorate level courses may either self-fund their studies, apply directly to their university for support through a studentship or scholarship, apply for a PhD studentship from an independent funder, or apply for a studentship from one of the UK Research and Innovation (UKRI) Research Councils.

The ways that students in this study funded their tuition fees, if they were not funded by the Scottish Government, and the implications of this are discussed below.

4.2. Key findings

• Whilst the majority of HN/undergraduate and FE students were not paying tuition fees, more than half of postgraduate students (56%) were paying tuition fees. This compared with 12% of HN/undergraduates and 7% of FE students. Higher proportions of FE and HN/undergraduate students aged 25 and over, and HN/undergraduates who were part-time paid fees.
• The median value of tuition fees paid by full-time postgraduate students was £4,805. Among Masters students, the median tuition fee was £7,000 for full-time students. Around half (52%) of postgraduates used savings or loans to pay their fees, while 25% received support from their university.
• The benefits of government-funded tuition were highlighted by FE and HE students taking part in the qualitative research, who reported that they made studying more affordable.
• Postgraduate students' views of tuition fee loans for Masters or Postgraduate Diploma courses were mixed. While these were said to enable postgraduate study, often loans did not cover the entire cost of the tuition fees.
• For some students, having to pay even a small proportion of their tuition fees had a considerable impact on their finances and contributed to students' financial stress.

4.3. FE tuition fees

All students in the survey were asked if they were paying tuition fees this academic year (2023 to 2024), and, if so, the amount they were charged before any financial support, fee discounts or fee waivers. As the majority of Scottish-domiciled FE students have their tuition fees paid by the Scottish Government, the median cost of all FE students who responded to the survey was zero.

A minority of FE students (7%) reported that they were paying tuition fees for their course. Those aged 25 and over were more likely to be paying tuition fees (14%) than those aged 16 to 19 (2%) or aged between 20 and 24 (0%). Female students were also significantly more likely to be paying FE tuition fees (10%) than male students (2%). Those living independently (renting or with a mortgage) (11%) were more likely than those living with their parents (2%) to be paying FE tuition fees. Meanwhile, no students living in the 20% most deprived SIMD areas reported paying FE tuition fees, compared with one in ten (10%) of those living in the 80% least deprived.

Students who reported paying tuition fees for their FE courses were asked whether anyone had contributed towards the costs of their tuition fees this academic year. This included themselves (using their own savings or loans), their parents, spouse, or partner, another relative, employer, the college they were studying at, or someone else. However, given the very low proportion of FE students paying tuition fees and receiving a contribution above zero from one of these groups, the median amount of this contribution cannot be robustly reported.

4.4. HN/undergraduate tuition fees

Eligible Scottish-domiciled students can apply to SAAS to have their tuition fees paid directly to their college or university. Eligibility is based on a number of factors including residency, level of study, and previous funding that the student may have had to undertake a higher education course.

Around 1 in 10 (12%) HN/undergraduate students stated that they paid tuition fees. Among those paying tuition fees, the median value was £1,500 in academic year 2023-2024. This figure excludes any fee discounts, fee waivers or financial support the student may be in receipt of.

Certain groups were significantly more likely to be paying HN/undergraduate tuition fees than others. For example, male students (17%) were more likely than female students (10%) to be paying HN/undergraduate tuition fees. Around 1 in 5 (21%) of those aged 25 and over paid HN/undergraduate tuition fees, compared with just 3% of those aged 16 to 19 who did so. Those paying HN/undergraduate tuition fees were also more likely to be studying part-time (32%) than full-time (7%), which may help to explain the difference by age group. Indeed, a majority of those aged 25 and over who said they were paying HN/undergraduate tuition fees (61%) were studying part-time.

There was also a significant difference by accommodation type: 15% of those living independently (renting or with a mortgage) stated they paid HN/undergraduate tuition fees, compared with 6% of those who lived with their parents. There was no significant difference by area deprivation.

HN/undergraduate students who paid tuition fees were asked whether anyone had contributed something towards the cost of their fees in the current academic year. The most common sources of contributions to tuition fees were students themselves (60%), including using their own savings or loans (not a tuition fee loan), the student's employer (23%) and their parent(s) (13%). Table 4.1 provides a full breakdown of responses from students to this question.

Base: all HN/UG students who stated they paid tuition fees and received contributions to those fees from specific others

Note: students answering this question could select multiple responses

Students were then asked the value of the contribution made by others to their tuition fees. The median amount HN/undergraduate students contributed themselves using their own savings or loans was £750. The number of HN/undergraduate students who both paid tuition fees and selected the other options at this question was too small for their median values to be reported.

4.5. Postgraduate tuition fees

Unlike FE and HN/undergraduate students, a majority of postgraduate students in Scotland (56%) said they paid tuition fees. Among those paying tuition fees, the median value paid by postgraduate students in the academic year 2023 to 2024 was £4,805. This is the value before any reductions from financial support, fee discounts or fee waivers. Looking specifically at Masters students, excluding those who answered zero, the median tuition fee cost for full-time students was £7,000 and the median cost for part-time students was £3,500 per academic year.

There were no significant differences by sex, age, parental experience of higher education, accommodation type or area deprivation in the likelihood that a Scottish postgraduate student was paying tuition fees.

As with FE and HN/undergraduate students, all postgraduate students who paid tuition fees were asked whether anyone had contributed something towards the cost of those fees in the current academic year. Similarly to HN/undergraduate students, the most common response was the student themselves, using savings or loans excluding the tuition fee loan (52%). A quarter (25%) of postgraduate students received help with their fees from the university or college they were studying at, which was notably higher than the proportion of HN/undergraduate students who did so (3%). Table 4.2 provides a full breakdown of results for this question.

Base: all postgraduate students who stated they paid tuition fees and received contributions to those fees from specific others

Note: students answering this question could select multiple responses

Taking only those who reported receiving a figure above zero in contributions from others – the median amount postgraduate students used from their own savings or received from a loan was £2,000. The median amount received from the university or college they were studying at was also £2,000, and the median amount received from employers was £2,400.

4.6. Students eligible for government funding towards tuition fees

4.6.1. Experiences of students eligible for government funding towards tuition fees

Most FE and HN/undergraduate students who participated in an interview or focus group understood that their tuition fees were paid by the Scottish Government to their college or university, and the benefits of this were discussed by students. Students highlighted that having their tuition fees paid helped them to engage in further or higher education, noting that if their tuition fees had not been paid, they would not have been able to afford to study.

"I don't think it would be manageable if [fees] weren't covered. (Full-time FE care experienced student)"

Among those taking part in the qualitative focus groups and interviews, there were full-time FE and HN/undergraduate students who did not have their tuition fees paid by the Scottish Government. The reasons for this related to not having met the residency criteria, or as a result of having exhausted their funding entitlement to HE student financial support. There were also part-time students who were not in receipt of part-time fee waivers and thus self-funded, or accessed funding via their institution or employer.

As outlined in the survey findings, the majority of students who were charged tuition fees were postgraduate students. Qualitative research participants reported that they accessed a variety of funding sources to assist with paying tuition fees, including the postgraduate tuition fee loan, university scholarships, research council funding, and independent funding bodies. Some students were also either partially or fully self-funded. Among Masters students, a key reason for having to pay tuition fees, albeit not the entire amount, was that the postgraduate tuition fee loan available via SAAS did not cover the entire course fee. This is because postgraduate tuition fees are not currently regulated meaning that universities can set their own fee levels.

4.6.2. Experiences of repayable postgraduate tuition fee loans

SAAS offers tuition fee and living cost loans for postgraduate students who meet the eligibility criteria (no tuition fee loans are available to those enrolled on PhD courses). The tuition fee loan of up to £7,000 is available for both full and part-time students, however the living costs loan (up to £4,500 at the time of the research in 2023-2024) is only available for full-time students. The qualitative postgraduate sample did not include any students enrolled on Postgraduate Diplomas.

Students who took part in the qualitative research indicated that a postgraduate tuition fee loan enabled them to continue their progression to postgraduate study. Several Masters students said they would not have been able to afford to pay their Masters tuition fees without the contribution of the loan.

"No, I wouldn't have done it [Masters study without the loan]. I just would not have been able to afford to at all because, as I said, I'd just been made redundant. So when I was made redundant, I just had to take the first job I could get, so I was working as a waitress, and that definitely would not have covered my fees. (Full-time postgraduate (Masters) student)"

Masters students with a postgraduate tuition fee loan had mixed views about repaying them, particularly in light of the fact most had also accrued student loan debt when studying at undergraduate level. Although additional debt was a worry for some, it was nonetheless viewed as being necessary to further their education and career prospects. There was a sense that, like the reduction in income for living costs, the burden of tuition fees or tuition fee loans was a short-term difficulty for a longer-term improvement in prospects. However, other Masters students were of the view that they had little option but to take the tuition fee and/or living costs loan, expressing a sense of resignation that it was not possible to study at Masters level without taking on additional debt.

"I'm just grateful that SAAS was able to cover the majority of it. It's not the worst thing in the world, and obviously this is a Masters, so I appreciate that you have to pay to get an education that's above the undergraduate. It's difficult, I'm quite financially strapped, but I also understand what I'm paying for and why I'm paying for it. I know this isn't forever, and once I finish my Masters, hopefully I'll be able to get a slightly higher-paying job, and it'll all be worth it. (Full-time postgraduate (Masters) student)"

Students' views were partly informed by the level of tuition fees charged by universities to study Masters courses. Several students commented on how high the fees are for such courses, and queried whether they provided value for money. Masters students also noted that the postgraduate tuition fee loan often did not cover the full cost of tuition fees, with students having to fund the remainder themselves.

"I understand universities are businesses, and you do need to pay fees, so I do understand. And I think if there wasn't a £7,000 loan for the Masters, then I don't think a lot of people would be able to do it that are actually Scottish students. […] I mean, I have some friends that struggle with even just paying the difference of the £800, and they still have a job and things like that, so I do think it should maybe be taken more into account. But then, obviously, I do appreciate that you need to pay the professors, you need to pay for the computers. You need to pay all these things, so I get that. (Full-time postgraduate (Masters) student)"

4.7. Experiences of students eligible for tuition fees paid by external organisations or funding body

4.7.1. UKRI Research Council studentships

One of the funding streams available to postgraduate PhD students is UKRI doctoral funding which covers students' tuition fees as well as providing a tax-free non-repayable stipend (of £18,622 per academic year in 2023 to 2024) for living costs for the expected duration of their PhD (3 years), or for some students, for the duration of a Masters qualification and a PhD (4 years). Several students in the postgraduate focus group and interviews were in receipt of a UKRI studentship and discussed the impact of this. Students noted that they would not have been able to afford to enrol on their PhD without securing the funding, and that the studentship alleviated their worries about paying tuition fees and living costs.

"It [having fees paid by UKRI] means that I can do a PhD. I think the fees for the PhD are a lot less than they are for a Masters. My Masters was really expensive and I had to pay for that myself. I spent £9,000 so I just took out loans to pay it off, because I wanted to do a PhD. I wonder why I did that - but I'm here now! I think the fees are about £4,000 for a PhD per year, but without [UKRI studentship] then I definitely couldn't afford it because I don't have any money saved after my Masters to do this. So, yes, it's a weight off my shoulders. (Full-time postgraduate (PhD) student)"

Although securing Research Council funding was described as having a positive impact on students, it was also noted that the availability of funding and information differed by field of study, with some students suggesting it was easier to access UKRI funding for STEM subjects as opposed to arts and humanities.

"There is a huge disparity between STEM and the humanities and the arts. We are really hung out to dry. If you look at the funding cuts across the board, not just in Scotland but across the UK and the world, let's be honest, higher education is an absolute bunfight at the moment! (Postgraduate focus group)"

4.7.2. Scholarships

Students also accessed support for tuition fees through scholarships from their university or from independent funding bodies. Some of the students who participated in an interview or focus group were in receipt of either full or partial scholarships for their tuition fees, and discussed the positive impact of this, for example, in terms of reducing their overall debt upon graduation by avoiding student loans. One student stated that without their fees scholarship, they would not have been able to afford to undertake postgraduate study. The impact of being awarded a scholarship is discussed in more detail in Chapter 5.

4.7.3. Employers

In some cases, students who were undertaking further or higher education for professional development were funded by their employer. In these cases, employers paid the tuition fees, and for one student, for additional expenses associated with studying. Students described how this enabled them to study when they would not have been able to afford it independently, and how this funding provided a sense of financial security and reduced the chances of having to drop out.

"So [my employer is] paying for the course fees and they're also paying for any like expenses that I may accrue for going to college, so they pay 45 pence a mile for me to travel to college, so there and back, and then if there's any books or equipment that I need, they've paid for that. […] Doing it this time, I feel a bit more secure in the position that I've got that it won't - like bad circumstances won't lead me to having to drop out again. (Part-time undergraduate student)"

4.8. Awareness of support available to help students with postgraduate tuition fees

Postgraduate students, including those studying at both Masters and PhD level, in interviews and focus groups generally reported finding it difficult to access information about tuition fee support, with mixed views expressed regarding the help provided by university staff. Some students criticised the knowledge held by university staff who did not signpost them to potential funding avenues for tuition fees. A PhD student highlighted how this lack of awareness and signposting can disproportionately impact those without a family history of engaging with postgraduate study. By contrast, some students mentioned receiving help from family in researching and securing funding, with those who had previously been through the funding system able to advise on what they might be eligible for.

"But before I even signed on for the PhD, I asked my supervisors - who were the go-betweens between me and the University - about funding options. They had no clue where to look. The finance department were worse than useless. […] It was just it's honestly been terrible from the get-go! So, I was kind of put off even looking or asking. I didn't know what - where to look or what to do, and being a first-gen[eration] academic, I didn't realise that there were options. (Focus group postgraduate (PhD) student)"

However, other postgraduate students found it easier to access financial assistance for tuition fees. They spoke of having accessed SAAS for undergraduate study, and using the same route for postgraduate tuition fee loans. Others who studied STEM subjects highlighted the relative availability of UKRI funding for those subjects.

4.9. Impact of paying tuition fees

Students who paid some or all of their tuition fees used a range of means to pay their fees. They spoke of drawing heavily upon their savings, with some having used up all their money saved by paying their tuition fees. Others said they received help from their parents to pay tuition fees, or used their wages, particularly those employed full-time and studying on a part-time basis. Some said they had to use a personal/bank loan, or had sold possessions to help fund the gap between a Masters loan and the actual fee.

For some students, having to pay even a small proportion of their tuition fees had a considerable impact on their finances. Having to pay tuition fees contributed to students' financial stress. Students worried about how they would pay for their tuition fees in future years. Some expressed concern about their ability to remain in their course due to difficulties covering the fees.

"I pay the full fees, which is quite difficult because they amount to about £8,000, so this year's fees are covered so I just need to start worrying about next year's fees, how I'm gonnae pay them. […] I'm not so fortunate that I'm gonnae have another £4,000 next year, so it's - I'm gonnae have to look come September how I'll finance it. At this precise moment, I'm not quite sure how I'll do that. […] When I looked at the funding, there was no available funding for myself because I earn too much money, so yes, I have to self-fund it myself, but the money coming in my household is obviously to support my child and my wife as well. So, it's not money that I have just sitting there. […] . If I was to go in and do further education again, PhD, I don't think I'd be able to afford to do it. (Focus group postgraduate (Masters) student)"

Concerns about how to cover the cost of tuition were not limited to postgraduate students. Part-time undergraduate students also spoke of the stress of not knowing how they would pay for their tuition fees. One part-time student suggested they may have to take a bank loan to pay for it.

There were students who said their university allowed them to pay their tuition fees in instalments - some were on a 12 month payment plan - or delay their instalment to allow them time to get sufficient funds together. Among those who struggled with tuition fee payments, in some cases because student loan payments were delayed, there was a sense that communications from universities regarding late or missed payments were 'threatening'. Communications like this added to feelings of stress and anxiety surrounding tuition fee payments for students who were self-funded. More widely, postgraduates in this study also expressed concerns as to whether the payment of tuition fees and any student loan debt incurred associated with this might deter future students from continuing their studies. Again, it was raised that this could disproportionately affect first-generation academics who are more likely to be from low-income households, from ethnic minorities and be care experienced.

"I think the hardest bit was between semesters, because I would get an email from the university that said, 'You need to pay this right now or you will not be allowed to be in classes.' […] So, you see this threatening email and you think, this is the end of my life, it's the end of my being here right now because they're going to kick me out of whatever. (Full-time postgraduate (Masters) student)"

"I love what I do, but the impacts that it's had on me have been atrocious - and not just personally - but also relationships […] It's really hard, but yes. I think there's a big disparity in who knows what. I think that there is a lot of first-gen[eration] academics that are really falling through the cracks. (Focus group postgraduate (PhD) student)"