Student Finance and Wellbeing Study Scotland 2023/24: literature review

9. Recent policy responses to student funding

The 2017 Independent Review of Student Support (Scottish Government, 2017) called for a Minimum Student Income of £8,100 in FE/HE, and recommended student loans be extended to FE. The Scottish Government’s review of student funding in FE (2019a) found that many students were unable to meet their essential living costs, particularly lone parents and mature students. ScotCen’s research with estranged students (Minty et al., 2022) for the Scottish Government found existing student support may not cover students’ essential costs, leaving them at risk of homelessness, drop out and poor mental health. A review of disability related student support was undertaken in 2020 and 2021 by SAAS (SAAS, 2024c). The review’s surveys and focus groups of FE and HE disabled students and staff in colleges and universities, highlighted the lack of information on disability related student support across FE and HE. It also pointed to the differences between the way disability related student support is administered in FE and HE.

The publication of the 2021/22 Programme for Government (Scottish Government 2021) reaffirmed the Scottish Government’s commitment to the principle of free tuition, while also committing to expanding the total student support package to reach the equivalent of the living wage over the next three years, and reviewing the funding provision for postgraduate students.

The Scottish Government has responded (Scottish Government, 2019b) with additional investment in bursaries and student loans; however, student loans remain unavailable to FE students. In recent years, the overall combined income available to students (either through a combination of loans and bursaries for those enrolled on HN/undergraduate courses, or through bursaries alone for those in FE) has increased. Other changes include:

• The increase in the HE bursary income threshold in 2019 from £19,000 to £21,000 which aimed to support more students from the lowest income households to access the highest levels of support.
• In January 2022, free bus travel was extended to all under 22s resident in Scotland.
• A £350 uplift in support for HNC, HND and undergraduate students in 2022-23 as a first step to delivering the Scottish Government’s Living Wage commitment.
• A £900 uplift in support for HNC, HND and undergraduate students in 2023-24 as the second step to delivering the Living Wage commitment.
• An 11.1% inflationary uplift applied to FE bursaries in 2023-24.
• The student loan repayment threshold has increased annually to £27,660 in 2023-2024, meaning students did not begin repaying their loans until they earn more.
• The creation of a bespoke package of support in academic year 2023/24 for HE students who are estranged from their parents/ legal guardians/ carers which includes the Estranged Student Bursary (£1,000).
• A £1,500 uplift applied to the postgraduate tuition fee loan in 2023-24.

While undertaking this research, the Scottish Government announced plans to increase levels of student support for the 2024-2025 intake with a £2,400 Special Support Loan for both HN/undergraduate and postgraduate students (SAAS, 2024b). This will make the support available to HN/undergraduate students who are care experienced, estranged or from the lowest income households (below £21,000) equivalent to the Living Wage (£11,400 for the year). The £2,400 loan uplift will also be made available to postgraduate Masters students, increasing the total loan available to them to £13,900. The Special Support Loans will not be taken into account by the Department for Work and Pensions (DWP) when assessing students’ Universal Credit claims. Also, for the 2024/25 academic year, HN/undergraduate students will be provided with the option to receive their student support payments over 10 months.