Students feeling pinch more than ever as cash applications hit high

Published on Sunday 30 August 2009 22:42

THE soaring number of students applying for financial help because of hardship has reached a new high.

In total, 14,386 students at Scottish universities applied for the emergency cash in the last academic year, 2008-9.

The figure marks an increase of more than 1,000 from the previous year, when there were 13,283 applications.

The latest statistics were obtained by the Liberal Democrats via freedom of information laws.

In March, The Scotsman revealed several universities had exhausted their hardship funds for students in financial distress, sometimes more than once.

About 16 million was distributed by the Scottish Government in higher education discretionary funds for 2008-9 – an 8 per cent increase on 2007-8.

But before the academic year ended, universities returned with demands totalling 882,500 to cope.

Dundee's Abertay University saw its hardship fund run out twice, despite an extra 23,272 from the Student Award Agency for Scotland (SAAS).

The additional money was exhausted within a month.

Margaret Smith, Liberal Democrat education spokeswoman, said: "To have 14,386 students across Scotland applying for hardship funding is seriously worrying.

"This number is more than the total student population at either St Andrews or Stirling University."

She restated calls – previously made by student union NUS Scotland – for Scottish students to have an minimum income guarantee of 7,000 a year.

She went on to say: "We already know that one in three students is dropping out of further education due to money problems.

"It is time ministers woke up to the reality of student hardship in Scotland.

"Students are struggling to find part-time work, experiencing falling levels of family support and crippling rates of commercial debt.

"Growing numbers will find themselves having to drop out.

"That will be bad news for them and even worse news for the economic future of Scotland."

A survey by NUS Scotland earlier this month revealed half of students north of the Border are dependent on high-cost credit cards.

It also showed that 70 per cent are forced to work more than the ten hours a week that is recommended, and that 54 per cent felt worse off because of the recession.

Many employers have cut back on part-time and temporary staff to save cash in the recession, cutting off a crucial financial lifeline for students.

Liam Burns, NUS Scotland president, said he was expecting an announcement soon from the government on student debt in the coming months.

He said: "These figures, unfortunately, aren't surprising and are only set to get worse.

"Working towards a 7,000 minimum income for students is the only way to achieve that."

A Scottish Government spokesman said student support had been "inadequately funded" by previous administrations.

But he described reducing graduate debt and tackling student hardship as priorities for ministers.

He said: "That is why we have introduced a number of policies to tackle these issues including restoring the principal of free education in Scotland."

He argued that the abolition of the graduate endowment fee had been of benefit to up to 50,000 students and graduates.

And he added that the government had created help for part-time students.

He said: "Additionally, we are currently considering the response to our consultation on how 30m to improve student support should be spent."