SNP rules out extra cash for Scots students

Published on Saturday 12 December 2009 19:14

INCREASING financial support for thousands of Scottish students has been ruled out by the government in a move slammed as "dangerously shortsighted".

Mike Russell, the new Education Secretary, has confirmed that state-backed loans to students will remain at a level amounting to hundreds of pounds less than those available to their counterparts south of the Border.

Tens of thousands of students will be affected by the decision, with student leaders claiming that dropout rates, which are already high, will increase as a result of hardship during the recession.

In a parliamentary question from Claire Baker, Labour's higher education spokeswoman at Holyrood, Russell was asked if he would close the disparity.

He replied: "The government has no plans to match the maximum amount of student support available to dependent students under the age of 25 in Scotland with the maximum amount offered in England."

The maximum means-tested loan support for students classed as being dependent on their families in Scotland is 5,852 per year, dropping to 5,067 for those from wealthier backgrounds. However, in England, students whose families are on a similar level of income can borrow a maximum 6,403. This means that, in comparison, Scottish students could be out of pocket by up to 1,336.

In October, Russell's predecessor, Fiona Hyslop, who was removed from her post last week, announced new grants of up to 1,000 for students as well as an increase in the maximum level of interest-free loans.

But the increases still did not bring Scottish levels of support up to those in England. Student leaders pointed to the findings of a new NUS Scotland report, which showed 75 per cent of first-year students grossly underestimated the cost of living.

It found most students believed they would spend under 150 a week on essentials including rent, bills, food, books and travel despite a previous study which found the average student spent 176 a week, equating to 1,352 a year.

It also found that 32 per cent were prepared to resort to commercial debt via an overdraft or credit card to fund their education.

Emma Wright, a first-year student at Aberdeen University, was forced to move back in with her family when she could not afford to pay rent on a flat.

The 18-year-old, who lives in Kingswells, Aberdeen, said: "I had to do extra shifts at work to afford the cost of living, but stopped as my studies would have suffered. I think that the student loan needs to be increased."

Liam Burns, NUS Scotland president, said: "Our report has found that students coming to university or college this year are being sold a false hope of adequate student funding during their studies, but Scotland's students are still in the red.

"Not only is there a gap between what students think they will spend and how much it costs to be a student, there is a gap between how much it costs and how much they will get.

"There is also a gap between how much Scottish students get compared to their English counterparts. At best this amounts to over 500 a year, and at worst Scottish students lag thousands of pounds behind. Simply ruling out trying to bridge this gap is dangerously shortsighted."

He said parents have less money to help their children study because of the recession, which had also caused a shortage of part-time jobs which many students depend on. He added: "The priority must be getting more money into students' pockets."

Baker said Scottish students were still losing out financially. "Mike Russell has made it absolutely clear that the SNP has no intention to give any more help to vulnerable young students in Scotland.

"Students are still saying that hardship is a key issue for them that requires continued action.

"This is about making sure students get the same level of financial support that is offered south of the Border. The SNP are simply denying that this is a problem worth addressing and I would urge Mike Russell to rethink his approach."

Earlier this month, the Scottish Government provided an extra 12 million to help head off a critical shortage of support funds for hundreds of vulnerable students, but the amount was half of what colleges and universities asked for.

The additional money was made available by the Scottish Funding Council because further and higher education institutions throughout the country are struggling to provide lifeline bursary payments of up to 90 a week due to the unprecedented numbers of students admitted this year.

Baker said the funding was "better than nothing" but only half of what colleges requested. "Without further action from the SNP, students may be forced to drop out halfway through their course or will simply be unable to start in January due to financial hardship. The Scottish Government must ensure the sector and students are properly funded."

Meanwhile, studies have shown that dropout rates in Scotland are higher than in England, with financial hardship cited as one of the major factors by students. More than one in ten of all undergraduates at the 18 universities north of the Border do not go into second year, compared with the UK average of 9 per cent, figures from the Higher Education Statistics Agency revealed.

'12,000 debt is making me think again about continuing to study'

One student affected is Ryan MacGillvray, 20, who is in his second year at Abertay University in Dundee, studying computer games design.

MacGillvray has had to borrow at commercial rates to supplement his student lifestyle and has already built up a debt of 6,000.

He said: "I have an English friend who always seemed better off, primarily as his loan was paid in large lump sums so he could budget better and pay things like rent off in chunks to avoid having to borrow money privately.

"And now with exams coming up I just don't have the time to work my 26-hour telesales job any more – another blow to the finances.

"I am hoping to carry my degree on into a Masters, but the looming debt that I estimate to be over 12,000 by the time I leave has given me second thoughts."