Gemma Fraser: Students learn a harsh economic lesson

Published on Monday 30 March 2009 09:57

STUDENTS pleading poverty is nothing new – although not having enough beer money has traditionally been the biggest concern for young scholars.

Edinburgh University student Stevie Wise's financial troubles were far worse than not being able to afford a night out though – in fact, they became so bad she had to drop out of university altogether.

The third-year student had completely run out of money and was so overwhelmed by the financial stress that she had no option but to quit university and move back home with her parents.

Like every other sector of the population, students are not escaping the recession unscathed, and Stevie is just one casualty. Nationally, around 16 million was distributed by the Scottish Government in university hardship funds for 2008/09, which is an eight per cent increase on 2007/08.

The demand for financial help from students has been so high that universities have gone back asking for a total of 882,500 to cope with urgent student appeals for help.

Edinburgh universities have seen as much as a 50 per cent increase in students asking for financial help.

Stevie, 23, pictured above, religious studies student, is just one of thousands across the country who has had to appeal to her university for money to live off.

She said: "I ended up with no money and I couldn't afford to live. I was in dire straits and I just had to try and survive without any money.

"The financial stress was just too much and I was absolutely miserable so I had to drop out."

She is not alone in her financial difficulties.

Since the start of this academic session, Edinburgh University has given 500 students money from its hardship fund – an increase of more than 15 per cent on this time last year.

Heriot-Watt University has seen an increase of nearly 50 per cent in the number of hardship applications, from 343 in 2007/08 to 544 in 2008/09, while Edinburgh Napier University has received 28 per cent more applications than last year.

The Advice Place at Edinburgh University Students' Association (EUSA) has experienced a 23 per cent rise in students asking for help and advice on financial issues, an increase of around 400 people. The Advice Place has also reported that students are coming to them after being refused loans and overdrafts from banks.

Adam Ramsay, EUSA president, said more and more students are being "forced into poverty" as a result of the credit crunch.

He said: "The part-time job market is drying up, and for the first time students are coming to us because banks are refusing to lend them the money they need to survive.

"It's never happened before that students have not been able to get a loan and it's a massive issue.

"Students depend on debt to be able to survive. If they can't get a loan or a job it means not having any money at all.

"Students can't afford the basic necessities of life and will have to get by living off tinned tomatoes and lentils and not much else.

"I've met people who couldn't afford to be in uni any more so have dropped out."

Mr Ramsay, like his student union colleagues across the country, is demanding a guaranteed annual income of 7000 for students through loans and grants to enable them to survive their studies.

He said: "The student support system is broken. The SNP promised to fix it, but they haven't yet delivered.

"The current low levels of student support are forcing people into poverty and out of education.

"Unless we want a less educated population and workforce for years to come, the Government must provide a minimum income of 7000 via a mix of grants and loans, focusing on the poorest students first."

Other students believe people studying in Edinburgh should be given extra grants to cope with the city's expensive housing.

Fourth-year English language and history student Fiona Brown, 21, says she is paying around 100 more on rent per month for her Marchmont flat than her friends studying in other parts of the country.

She said: "I know it's not as expensive as London, but in London you get extra allowance.

"I got quite a sizeable amount from the hardship fund and it does help a lot but I think more people would benefit from a change in the system to help students in Edinburgh pay their rent."

As for Stevie, luckily she managed to borrow money from friends and family and received 1200 from Edinburgh University's student hardship fund, which enabled her to re-commence her studies.

Although she has now managed to go back to university, her financial worries are not over. Her debt is rising daily.

She said: "I now have a student overdraft of around 2500 and a credit card debt of 500 and I'm in rent arrears, but I still can't afford to live and have applied for loads of jobs now. It's really difficult though and jobs are hard to come.

"I'm really worried about next year."