The Scottish Government

« Previous | Contents | Next »

Listen

1. INTRODUCTION

1.1 This report presents findings from the study of student income, expenditure and debt for students studying higher education ( HE) and further education ( FE) in Scotland in 2007-08. The study was commissioned by the Scottish Government and conducted by the Scottish Centre for Employment Research at the University of Strathclyde Business School in conjunction with colleagues from the Business School and the Department of Economics of the University of Glasgow.

1.2 The first part of this chapter provides the background to the study. After a short exposition of student numbers, it outlines what financial support is available to students noting how this support differs for HE and FE, and part-time and full-time students. The chapter also provides a short review of the issues in the research literature related to student income, expenditure and debt, and how these issues informed the design of the research.

1.3 The chapter then presents the aims and objectives of the project and briefly outlines the research design. This section indicates a number of issues that arose within this design. (Based on this experience, comments on the limitations to the study and suggestions for future research design are offered in the concluding chapter of this report.) Finally, the structure of the remainder of the report is signalled.

Background to the Study

Universities, Colleges and Student Numbers

1.4 The number of students in Scotland has increased significantly over the past 20 years, particularly in higher education. The actual number of students enrolled with universities and colleges is difficult to determine because, for example, within colleges, students can enrol on more than one course in any academic year so that the number of enrolments is significantly higher than actual student numbers. ⁶

1.5 In Scotland there are 20 colleges and universities which award degrees and 43 further education colleges. A typical FE college curriculum spans specialised vocational education and training through to general educational programmes. These colleges also provide some higher education. ⁷

1.6 In 2006-07 there were 308,085 students in higher education in Scotland. This figure also includes 14,115 students studying with the Open University in Scotland. Around 71% of students were domiciled Scots. In 2006-07 there were also 468,155 FE college student enrolments. ⁸

1.7 Scottish students can study higher education qualifications at college, mainly at sub-degree level. Indeed, 23% of FE college activity encompasses higher education and over 30% of young Scots studying HE do so in an FE college ( ASC, 2008). Thus, whilst FE still occurs in colleges, HE can be undertaken both at FE colleges and Higher Education Institutions ( HEIs).

1.8 The number of students studying higher education has continued to increase and is now 30% higher than in 1999-00. ⁹ Participation in higher education in Scotland has risen to and levelled at around 50% of young people, making Scotland the lead country in the UK in terms of participation rates. More women than men study higher education (57% versus 43%). ¹⁰ However, despite the shift from an elite system of higher education with a small number of universities with small enrolments, to a mass system of higher education with a commitment to widening access, working class participation remains stubbornly low in the UK. ¹¹

1.9 This expansion of HE is a cornerstone of Scotland's economic and social policies as well as its lifelong learning strategy, and is intended to deliver a high skills economy and to tackle social exclusion and poverty. In particular, increasing the supply of graduates in the Scottish labour market is a key feature of developing a Smarter Scotland. Scotland's FE colleges too are accorded a role in the creation of a Smarter Scotland. ¹²

Student Funding in Scotland

1.10 Financial support for students in Scotland is determined by the level and mode (either full-time or part-time) of study and not by educational establishment. Students are classified as either Higher Education ( HE) or Further Education ( FE) students, with different funding arrangements. Thus, students studying HE in an FE college will have different funding from students studying FE in an FE college. All students are exempt from council tax where only students occupy the dwelling place. In all other cases a discount is applied to the bill for the household. A further complication arises from differences in funding that apply to students on health-related vocational courses.

1.11 In terms of financial support for students studying higher education in HEIs a broad distinction can be made between full-time and part-time study. The former involves:

• Tuition Fees are paid by the Student Awards Agency for Scotland ( SAAS) on behalf of the student.
• Student loan: maximum £4400 living away from home; maximum £4975 for a student from low-income family. Means tested.
• Young student bursary: maximum £2510. Means tested.
• Travel costs: maximum claim £1080 but students pay the first £155.
• 5 ^th year Dentistry and Medicine students are eligible for health bursary.
• Those students with dependents are eligible for specific grants:
• • Adult dependants' grant: maximum £2510
  • Lone parents' grant: standard £1240
  • Additional childcare grant for lone parents: maximum £1155 if in receipt of Lone Parents Grant
  • Discretionary Childcare fund support. Awarded by institutions.
• Those students with disability are also eligible for Disabled Students Allowance ¹³:
• • Basic allowance: maximum £1640.
  • Special equipment allowance: maximum £4905 (over duration of course)
  • Non-medical personal help: maximum £12,420
  • Additional travel costs
• Hardship Funds (now called Discretionary funds) awarded by institutions; national guidance but levels determined by institutions.

1.12 Financial support for PTHE students involves:

• Those students otherwise unemployed or on low income, fees paid by the Scottish Funding Council fee waiver scheme.
• Student loan ¹⁴: maximum £500 only for those students with low income and studying at least 50% of a full-time course. Means tested.
• Those students with disability are eligible for pro-rata Disabled Students Allowance based on the maximum amounts for full-time students detailed above:
• Hardship Funds (now called Discretionary funds) are awarded by institutions.

1.13 SPICe notes that ' the level of support available to FE students depends on a number of factors including income and family circumstances, age, and if the student is studying full-time, part-time or by distance learning'. ¹⁵ Current financial support for students in FE colleges broadly includes:

• full-time students not having to pay tuition fees, although part-time and distance learning students usually do.
• with national guidelines, full-time FE students being eligible for means-tested discretionary Further Education Bursary and an allowance administered by colleges for additional study and/or travel costs.
• separate Discretionary and Childcare Funds for FE students from the Scottish Funding Council's Further Education Discretionary Fund ( FEHF)/Childcare Fund, administered by the institution.
• also Dependents Allowance, Additional Support Needs for Learning Allowance and Travel.
• for 16-18 year olds, Educational Maintenance Allowances ( EMAs) to encourage post-compulsory study. ¹⁶

1.14 For full-time students, further support for living costs occurs with non-repayable bursaries and allowances dependent on age, personal and family circumstances and household income as well as a series of different allowances. In 2005-06, the study allowance, travel expenses and maintenance allowance were most used by FE students. ¹⁷

1.15 Both full and part-time students 18 years of age and over can take out a Career Development Loan ( CDL) ¹⁸ of between £300-£8,000 to cover the cost of pursuing a course for up to two years. However, recent research has indicated a limited awareness of CDLs as a source of funding. ¹⁹

1.16 Universities and colleges also allocate Higher Education Discretionary (hardship) funds from the SAAS. Students must take out the maximum student loan before they apply to their institution for hardship. There are general guidelines but each institution determines its own criteria and award amounts.

Student Finances

1.17 Among students, having little money, being in debt and not having a regular income are seen as the three worst aspects of student life. ²⁰ Moreover, there is powerful evidence that financial issues lead to the stratification of the student experience, preventing students from less well off families from full participation and resulting in a concentration of less advantaged students in less prestigious institutions and courses. ²¹ This section examines student income and expenditure, real and expected debt amongst students, and attitudes to and, importantly, the expected outcomes of debt in terms of choices.

Student Income through Employment

1.18 To support their study, the majority of students take up paid work. Students are now a structural feature of the labour market, often working in industries such as retail and hospitality jobs which have low entry and exit barriers. Around 40% of students work in retail and 21% in bars, hotels and restaurants. ²² There is some indication that these industries now intentionally recruit student workers because students are perceived by employers to be good quality labour, possessing the right customer service skills. ²³

1.19 The TUC and National Union of Students claim that the number of full-time students with jobs in the UK has risen by 54% in the last ten years ²⁴, with evidence that Scottish students are more likely to work than students in other parts of the UK (estimated at 67%). In the UK, 55% of young people from middle class backgrounds work; this figure rises to 61% for students from working class backgrounds, with working class students tending to work longer hours and being more likely to have to work in term-time. The latter students are more likely to lack parental financial support and therefore are working to pay for essentials, while a higher proportion of students from middle class backgrounds work to enhance their CVs. ²⁵

1.20 While the Cubie Report of 1999 (also known as the Independent Commission of Inquiry in Student Finance 1999) recommended that students should work no more than 10 hours per week, a third of students work more than 25 hours a week while the average work 20 hours; those from poorer families are most likely to work excessive hours. In Scotland, six out of 10 female students hold down part-time jobs compared of 44% of males, yet males work more hours and earn more. ²⁶

1.21 Despite having the type of soft skills in most demand, these skills do not attract wage premiums. Indeed, retail and hospitality are the industries with the highest incidences of low wage work, often paying at or only slightly above the National Minimum Wage. Student income from such jobs would not be expected to be high therefore, if part-time or even full-time. Average student pay is £119.20 a week in Scotland, with just 1 in 16 earning more than £200 per week. ²⁷ Only through working long hours can take-home pay in these industries be raised - a working pattern that could impact on students' capacity to study, though a firm causal link has yet to be demonstrated.

1.22 Although students report term-time employment to be detrimental - affecting study time, attendance and completion of assignments ²⁸ - some studies have found no impact on time to study. ²⁹ Instead, leisure and sleep time suffer. Whether these deprivations impact on the educational experience has not been explored, although term-time work and financial pressure have been found to lead to stress and to poorer mental and physical health amongst students. ³⁰ Significantly though, the need for paid work by students from poorer families does lead to a stratification of the student experience whereby cross-class socialisation is inhibited and the development of class-related soft skills required of graduates stifled. ³¹

Student Expenditure

1.23 Callender and Wilkinson found that students' total average annual income in England and Wales to be £5,513 while their expenditure was £6,897. ³² Some of the gap is made good by drawing on savings, often accumulated through summer vacation earnings and by borrowing from commercial sources and overdrafts.

1.24 The annual RBS survey of student weekly expenditure found that one in five Scottish students do not engage in any financial planning or budgeting. Of those students who do plan and budget, 42% underestimate the amount they need to spend on rent and living costs. The costs of attending university are generally not well anticipated; students find it to be much more expensive than they expected and many begin university with little idea about the levels of support that they can expect. ³³

1.25 There is some ambiguity about the relative weighting spent by students on various items of expenditure. According to Callender and Wilkinson, living costs make up the majority of students' average expenditure, accounting for an average of £4,656 over the academic year. Over three-quarters of this figure were absorbed by three areas of expenditure: entertainment (30%) food (24%) and personal expenses (24%). The Clydesdale Bank states that entertainment is the greatest expenditure for students, accounting for 20.4% of total expenditure. ³⁴ However, the UNITE/ MORI survey of 2005 found that the main expenditure for students is accommodation, with the average student paying £54 per week, around three times as much as they spend on alcohol or going out. ³⁵ In interpreting these apparent ambiguities, it must be remembered that some students receive financial support from their families in the form of free or subsidised board and lodging, and therefore any residual earnings can be spent on travel and entertainment.

1.26 There are also gender related differences in expenditure. Men's monthly expenditure is on average higher than that of women. ³⁶ The 80% higher expenditure found in the latter study was due to spending more on alcohol, food and sport.

Student Debt

1.27 There is much concern about the level of student debt. However, it was only in 2007, that the amount of debt owed by students in Scotland to the Student Loan Company ( SLC) was first calculated. It revealed that the amounts owed by Scottish students had dipped; 8% less in 2006-07 than in 2005-06.

1.28 However, and importantly, these calculations refer to debt from government-backed sources and not debt incurred from commercial bank loans, credit cards or other sources. As such, student debt is likely to be far higher than that represented by SLC figures and as yet there is little consensus as to how student debt is best calculated. There have been attempts to have a more holistic approach to calculating student debt, for example that of FE students by Davies et al. but response rates were very low and the samples small. ³⁷

1.29 Moreover, the debts incurred by students represent not only those sums directly incurred by the costs of study, but also involve patterns of expenditure incurred by a set of young people who are actively engaged in patterns of consumption and leisure lifestyles shared with other young people who are not involved in study. There is a lack of clarity about how these different forms of debt should be represented. As research on student expenditure has revealed, much money is spent on socialising and leisure - both activities that other young people who are not students undertake and therefore not specifically attributable to studying.

1.30 While little research exists that focuses directly on patterns of hardship amongst students, there is evidence that some students live significantly below the poverty line or have insufficient funds to afford a healthy diet or to heat their accommodation adequately. While the funding regime is underpinned by an assumption that students are semi-dependent and can rely on support from their families, there is evidence that those from very poor families, including those in which a parent(s) is unemployed or in receipt of benefits, are often expected to contribute to family income from their bursary, loan or wages rather than being a recipient of support. ³⁸

1.31 One of the key concerns about student debt is that it represents a burden that might dissuade young people, especially those from working class families, from studying at university. Students from working class backgrounds do incur higher debts than those from professional and managerial families and those debts are likely to be to banks rather than family and friends (Forsyth and Furlong 2003b; Furlong and Cartmel, 2009), partly because students from professional and managerial families are more likely to benefit from parental financial support. A UNITE/ MORI (2005) survey shows that students from middle class families are more likely to be debt free on completion of their studies than students from working class backgrounds (29% versus 16%).

1.32 Financial concerns do play a major role in decisions about whether or not to enter higher education generally and have a more pronounced impact on the decisions of certain groups: Callender (2003) for example argues that the most debt averse groups include low income families, lone parents, Muslims, and black and minority groups. Other studies have also shown that prospective working class students are more likely than their middle class peers to report that they are deterred by the cost of HE and fear of building up large debts (Archer and Hutchings 2000; Christie and Munro 2003; Connor et al. 2001; Knowles 2000; Forsyth and Furlong 2000, 2003a), as are mature students (Connor et al. 2001; Ross et al. 2002). However, many students begin their studies with a very poor idea about costs and potential sources of assistance.

1.33 For students who are concerned about debt or who lack access to the funds that would facilitate access to a full spectrum of choices, there are a variety of ways in which debt can be minimised. Common strategies include choosing shorter courses, choosing institutions that minimise travel costs and selecting institutions close enough to home to avoid the need for additional accommodation costs. ³⁹ Students from the least affluent backgrounds are more likely to live at home to reduce costs. One recent UK-wide study found that over half of students from working class backgrounds chose their university because it was close to the parental home compared to less than a quarter of students from middle class backgrounds. ⁴⁰ Staying 'local' helps these students reduce travel costs and maintain links to a local labour market, which is important in minimising financial risk. ⁴¹ A lack of money and financial security also limits such students' choice of course and length of time they were prepared to stay in higher education. ⁴²

1.34 Non-completion of courses may also be affected by finance and debt. ⁴³ Callender and Kemp ⁴⁴ found that 10% of students had considered withdrawing for financial reasons, while a study of retention at Napier University in Scotland found that students who worked for more than 16 hours per week during term-time and who had limited access to financial support from families were more likely to leave. ⁴⁵

1.35 Money problems and the fear of running into debt are among the chief reasons why students from working class backgrounds are more likely to drop out of university. ⁴⁶ In addition, such students are more likely to defer taking up their place, switch courses or repeat a year for non-academic reasons.

1.36 Those working class students who remain at university may also find that their activities there are affected by concerns about debt, affecting their overall educational experience, restricting opportunities for developing social capital and forming new, cross-class, social networks and limiting knowledge about employment opportunities both during and after study. ⁴⁷

1.37 Concern about debt is often compounded by lack of confidence about achieving academic success and perceived chances of finding a sufficiently well paid job. Research has shown that male students expect to earn more than females (£20,500 versus £18,400) and those from working class backgrounds expect to earn less than their middle class counterparts (£18,550 versus £19,500). ⁴⁸ Indeed, Scottish research has shown that students from low income families end up paying more for higher education than their middle class peers and that they are less likely to receive help with repayments once they graduate. ⁴⁹ Ultimately these financial pressures mean that working class students are more likely to take jobs that do not require a degree when they leave university and often feel compelled to take the first job that comes along. This pressure in turn makes it harder to gain a job that leads to a graduate career and move to jobs where they are better able to repay debts.

Key Implications for Research Design

1.38 The above review of the academic and policy literature and documents has a number of implications for the research design. Firstly, it is clear that the policy context is dynamic and that the previous questionnaire used in the 2004-05 study needed to be revised where appropriate. The main impact on current student finances in Scotland is still occurring as a result of policy initiatives taken by the previous administration, and in particular the use of student loans. By contrast, since the last study, the extension of the EMA will already have had some impact on the finances of some FE students.

1.39 Given the expenditure pattern of students, it is also clear that the costs of study for students needs to be assessed against the expenditure of non-students. It is not clear that all student expenditure can be made distinct from the expenditure of non-students. For example, spending on alcohol, food and sport is not confined to students. For this reason it is important that the study of student finances is made sensitive to the finances of non-students. Consequently the research design from the current study has sought a control group of young Scots who are not students and never have been students despite having the qualifications that would have enabled them to access HE.

1.40 In terms of access and participation it is clear from both the academic literature and government policy documents that students from working class backgrounds experience both barriers to accessing HE and difficulties whilst in HE that arise from debt, whether actual or simply feared. As a consequence, it is insufficient to only quantitatively identify the financial situation of students from working class backgrounds. It is also important to explore, in more depth, their attitudes to the financing of study both specific to themselves and more generally. This requirement for mixed methodologies in the study of HE is becoming more widely appreciated. ⁵⁰ In this spirit, the current study complements the quantitative approach adopted in the previous study with qualitative research methods; in this case, generating a sample of interviews with students from working class backgrounds in order to explore, in more depth, the issue of these students' experience and attitudes to the financing of HE study.

1.41 As a result, the research design for the current study builds upon that of the previous study. It is broader in terms of its scope, with multiple surveys, and employs a mixed methodology, complementing the quantitative data at the core of the study with qualitative data. The result is a more holistic analysis of student finances in Scotland.

Aims and Objectives

1.42 In 2005, the Scottish Executive commissioned a first survey of Scottish students' income and expenditure for 2004-05. ⁵¹ This repeat study for 2007-08 makes baseline comparisons with that first survey but also builds upon the earlier research design and analytical possibilities. It enables assessment of Scottish-domiciled students' financial situation in the current Scottish policy context.

1.43 The research encompasses three samples of students: those studying higher education at HEIs; those studying higher education at FE colleges; and those studying further education at FE colleges. Within these groups, full-time and part-time HE students were covered but only full-time FE students are covered from the FE sector (the response rate for FE part-time students was low and difficulties existed in terms of assessing the extent and nature of some part-time study at FE colleges).

1.44 The aim of the study is to determine Scottish-domiciled students' financial position, particularly their income, expenditure and debt, and their attitudes to these finances.

1.45 The study comprises both desk-based and empirical research, with the latter using both quantitative and qualitative data. The findings are analysed using a range of variables, factors and categories, as identified in the research specification and by the research team with Scottish Government agreement.

1.46 To meet this aim, the study had a number of objectives:

• To generate robust information about Scottish student finances from a national sample of students in higher and further education.
• To identify any differences in the distribution of income, expenditure and debt amongst HE and FE students.
• To compare this data to a control group of non-students.
• To compare this data to previous Scottish data and similar data from England and Wales.
• To locate the findings within the context of Scottish Government policy and identify the implications of those findings for that policy.
• To identify follow-up research issues and suggest a framework for subsequent research.

Research Methods

1.47 This section of the report outlines the research design of the study. The project is the Scottish Government's second survey of Scottish students' finances, the first being 2004-2005. ⁵² In addition to providing updated data on the current financial situation of Scottish-domiciled students, the new project also enables baseline comparisons with the 2004-05 study.

1.48 This section first outlines the research specification of the current Scottish study, then the research plan followed by exposition of the research methods and their efficacy. It concludes with a short discussion of the emergent limitations of the research plan.

Research Specification

1.49 The Research Specification set out by the Scottish Government stated that the research would ' provide an objective report on the financial position of students in Scotland and collect limited attitudinal information on students' perception of their financial situation'. Moreover, the survey would ' collect detailed income, expenditure, borrowings, savings and debt information from a representative sample of students and report how these factors differ depending on student's background and circumstances'. Finally, the survey would ' provide a framework for undertaking follow up enquiries ... directed at specific sub groups of students that may have been the subject of a change in funding arrangements or that were identified as being at risk of hardship'.

1.50 The empirical research was to collect data on three types of groups of students; those in full-time higher education in HEIs and FE Colleges, part-time higher education students in HEIs and FE Colleges (including the Open University) and those studying further education in FE colleges. (Allied health students such as nursing and midwifery, with their own, different, funding arrangements were not included in the project.)

1.51 Within these three groups, sub-groups were identified as 'key reporting categories' for separate analysis. These sub-groups distinguished by:

• Sex
• Age group
• Level of study (first degree, sub degree)
• Socioeconomic group of parents
• Whether students' parents had HE experience
• Type of accommodation of students
• Family circumstances of student household (presence of partner and/or children)
• First year students
• Final year students
• Students of medicine
• Students who have taken out a student loan
• Students who work during term-time

1.52 In order to have statistically significant results for each of the above key reporting categories, the sample size was anticipated to be 2000 full-time HE students, 1000 part-time HE students and 500 FE students. To be included in the project, students had to be least 50% full-time equivalent ( FTE) ⁵³; as a consequence evening class students studying a single course for personal interest at college, for example, were excluded.

Research Plan

1.53 The 2004-05 project was based on a survey conducted using face-to-face interviews with students. For the 2007-08 project a new research design was developed and agreed between the research team, the project's Research Advisory Group and the Scottish Government. Firstly, this new design was broader in its collection of empirical data, having both quantitative and qualitative research - although the focus was on the former, with the latter a supplement. It also sought to include a control group of young Scots not studying. Secondly, the new design was different in how it collected the main survey data - this time via the web and, additionally for the control group, a postal survey. The project started in July 2007 and was completed in April 2009. The empirical research to collect primary data was conducted throughout the academic year 2007-08.

1.54 The research had three main stages: desk-based research, a series of surveys and, finally, a series of interviews with students. A schematic diagram of the research plan is presented in Figure 1 below.

Figure 1: Schematic diagram of the research plan

Stage 1: Desk Research

1.55 The desk-based research stage involved three reviews:

• A review of previous surveys of student income, expenditure and debt
• A review of academic literature related to student finances
• A review of relevant government policy documents related to student finances and the funding of HE and FE

1.56 The first review examined the existing UK surveys, the 2004-05 Scottish survey and the 2004-05 Student Income and Expenditure Survey that covered England and Wales. The project guidance for Eurostudent III 2005-2008, which is the Europe-wide project that maps the socio-economic living conditions of students, was also reviewed. This review enabled a core of questions to be identified that would make the 2007-08 main survey comparable with those other surveys, particularly the previous Scottish one.

1.57 The second review covered a range of academic literature centred on student finances as well as commercial surveys such as those conducted by high street banks. Both of these sources helped to identify developments and issues with student finances that had emerged since 2005.

1.58 The third review centred on government policy documents mainly but not wholly specific to Scotland. In respect of the latter, previous and current policy debates and initiatives were included.

1.59 The information from these reviews was used to update the context of the current study and to inform the development, in conjunction with the Scottish Government and Research Advisory Group, of the various research tools - the surveys' questions and interview schedules.

Stage 2: The Quantitative Research and the Surveys

1.60 The research involves three surveys: a web-based screening survey, the main survey (also web-based) and a postal survey.

1.61 The web-based approach was chosen to succeed the face-to-face method used in the 2004-05 Scottish study in order to improve the accessibility of and response to the main survey. Online surveys are increasingly popular, particularly among those with heavy time and working commitments, and among younger age groups with greater access to the web on-campus (and at home).

1.62 The two web surveys were designed and administered by a sub-contractor specialising in this technology - MRUK.

Sampling and the Screening Survey

1.63 For the main survey, it had been proposed that a sample of students would be accessible to the research team from existing databases held by Higher Education Statistics Agency ( HESA), SAAS, and Further Education Statistics ( FES). From these databases, a targeted random sample of 14,000 students would be invited to participate. Expecting a response of around 25%, the intended breakdown of this sample was to be:

• Full-time HE students: 8,000 to be contacted with an achieved sample of around 2,000.
• Part-time HE students: 4,000 to be contacted with an achieved sample of around 1,000.
• FE students: 2,000 to be contacted with an achieved sample of around 500.

1.64 This approach was not feasible because of data protection concerns. Instead the sample type and size had to be drawn from responses to a screening survey disseminated by universities and colleges, and which allowed students to actively opt-in to the study. Participation in the study and permission to access students needed to be negotiated and gained from all Scottish universities and colleges. This process caused some delay in the study.

1.65 Unfortunately, not all students in all colleges are contactable by email. Eventually, an email containing a previously piloted web-based screening survey was disseminated to all enrolled students at 48 institutions: 19 HEIs and 29 FE colleges. (The excepted HEI was the Scottish Agricultural College).

1.66 This survey needed to screen out students not of the target group, that is, for example post-graduate, allied health and foreign students. The screening survey contained 11 questions covering:

• Residence eligibility
• Institution
• Mode ( i.e. full or part-time), year, level and field of study
• Duration of course
• Hours of learning contact time
• Age
• Sex
• Ethnicity

1.67 The project was advertised extensively on university and college campuses across Scotland. In addition, an email notification was sent to students, through host institutions, explaining the project and encouraging participation. Financial incentives, in the form of prize draws, were also used.

1.68 Participation and response rates are difficult to assess for the screening survey as the exact number of students contactable and contacted in the FE colleges is not known. All students in HEIs were contacted. In total, working with the Scottish Government, it was estimated that around 160,000 eligible students would be contactable.

1.69 Through the institutions, students were sent an introductory, explanatory email followed by an email with the screening survey. Students were then sent several email reminders about the screening survey. Almost 22,000 students accessed the survey of which nearly 4,000 were ineligible and another just over 8,600 quit the survey without completing. In total 9,265 eligible students completed the survey of which 9,181 were useable in the sense that they agreed to be contacted again and so participate in the main survey. In terms of institution breakdown of HEIs, Strathclyde, Glasgow, Dundee and Edinburgh Universities constituted almost half of the sample for the screening survey; of the FE colleges responses were spread amongst the institutions. Only Ayr and Elmwood Colleges yielded no response despite participating. A list of responses per institution is included as Appendix A.

The Main Survey

1.70 With the final response to the screening survey not achieving the target of 14,000 eligible students, it was decided to send the main survey to all students eligible and agreeing to participate. This main survey was again web-based.

1.71 Because of concerns about its length as a web-based survey, the main survey was piloted twice - once with HE students, once with FE students, and subsequently amended. However, the final questionnaire still required half an hour to complete. The questionnaire for the main survey comprised the following variable areas:

• Student background ( e.g. demographics)
• Education-related income
• Paid work
• Other income
• Student choices (related to studying and finances)
• Financial wellbeing
• Expenditure
• Commercial credit
• Behaviour and attitudes
• Future aspirations and expectations

1.72 9181 students were sent the survey and several reminders, this time direct from the research team, were issued and financial incentives, in the form of prize draws, were again used. Of the 6,409 who accessed the survey, 5,314 completed it. From the total sample therefore of 9181, the response rate was 58%. This response rate is good, especially when it is borne in mind that throughout the project there were a number of 'competitor' student surveys, for example the National Student Satisfaction Survey.

1.73 These 5,314 responses were then cleaned, with outliers, for example, stripped out. Of the final useable responses 4,331 were full-time HE students, 520 were part-time HE students (including respondents from the Open University) and 114 full-time FE students (36 part-time FE students had already been deemed too low to be useable and excluded). A list of all of the HEIs and FE colleges from which there were responses is presented in Appendix B. Using data from HESA and FES for the HE and FE student populations in Scotland, the responses were then weighted where appropriate by sex, age, year of study, level of study and year of study. Details of the weighting strategy can be found in the technical appendix, Appendix D.

The Control Survey

1.74 The previous Scottish study of student income, debt and expenditure focused solely on students. While the policy interest clearly relates to the fiscal experiences of those who are undertaking a course of higher education and subject to students support policies, there are limitations in such an approach. Young people who do not experience higher education also have to survive on levels of income which are frequently low and engage in youthful lifestyles and patterns of consumption. Young workers on low incomes, as well as those who spend significant periods out of work or in precarious forms of employment, may also accrue significant debts and it would be wrong to assume that costly transitions are the sole preserve of students.

1.75 Not wishing to take the narrow view that students are in a unique position vis-à-vis income, debt and expenditure, it was decided that this study should be designed in such as way as to gather financial details of non-students. This comparison was to be achieved through a separate control survey, focused on the 19-21 years age group, which replicated key questions on income, expenditure and debt.

1.76 There are obvious difficulties in drawing a representative sample of young people who are not in higher education. There is no one database available to researchers that would include current status, age and current address. For this reason, the researchers had hoped to use a recent sample of the Scottish School Leavers Survey as an up-to-date database for the administration of the survey. The data is held by Scotcen who conducted recent surveys on behalf of the Scottish Government. However, as a result of data protection issues, this approach could not be pursued.

1.77 The agreed solution was to ask the Scottish Qualifications Authority ( SQA) to create a random sample of young Scots with two or more Highers (or equivalent) in 2004 as these would have been eligible to attend university. Due to concerns about the likely response rate to a sample with contact details several years old, and because the random sample would contain young Scots who did and did not undertake post-compulsory study, it was decided to contact 6,000 young people in order to achieve a planned 1,000 non-student responses.

1.78 A total of 6,000 young people between the ages of 19 and 21 were sent postal questionnaires requiring respondents to complete basic financial information comparable to that provided by the student sample. A total of 303 questionnaires were returned as undeliverable, bringing the target sample down to 5697. Of these, 581 useable questionnaires were returned; a response rate of 10.2%. As a random sample, questionnaires were returned by non-students, young Scots currently studying and those who had already graduated. Of those studying, some were at under-graduate level and below, others were post-graduate. These responses were then weighted by age and sex. The final useable sub-samples yielded 277 first degree students and 90 non-students. Details of the weighting strategy can be found in the technical appendix, Appendix E.

1.79 On the basis of these figures, it was decided to use the control group survey in two ways: firstly, to use the student responses to provide data triangulation with the main survey, and so a means through which the main survey data could be validated; secondly, to use the non-student responses for the purpose intended - as a comparable indication of the income, expenditure and debt of non-student young Scots.

1.80 It should be noted that both sub-samples are small, and smaller than intended. The reliability of the data should therefore be treated with caution. Having a control sample is important however. Suggestions for improving the response rate for any future control group are included in the concluding chapter.

Stage 3: The Qualitative Stage and Interviews

1.81 To complement the main survey, a series of interviews were conducted with full-time HE students from working class backgrounds. The attitudinal questions on the main survey provide good quantitative data of the financial situation of all students from all backgrounds. However, given the concern about the barriers to HE access and participation for students from working class backgrounds, it was important to explore in more depth the financial impact of study for these students.

1.82 The sample for the interviews was drawn from the main survey, which included an option for respondents to agree to be interviewed. Of those respondents who agreed, those from working class backgrounds were identified using the SOC 2000 codes 5-9 based on parental occupation. ⁵⁴SOC (2000) job codes 1-4 are assigned as 'middle class', codes 5-9 as 'working class' - that is, Managers and Senior Officials, Professionals, Associate Professionals and Administrative Staff as middle class; Skilled Trades, Personal Service Staff, Machine Operatives and Elementary Staff as working class. (Some of the difficulties is assigning social class are discussed in Appendix A.) The sample therefore consisted of students whose mother, father or both were machine operatives, sales and customer service staff, personal service staff or elementary staff.

1.83 There were 411 students in this category. Batches of students were drawn randomly from this sample and contacted for interview until the target of 50 interviews was achieved. In total, 52 interviews were conducted.

1.84 The process of recruiting interviewees was more protracted and difficult than anticipated. Interviews occurred at the end of the academic year and some students were indisposed - either travelling or working. In addition, although previously agreeing to be interviewed, some were now reluctant to do so.

1.85 Of those students who were interviewed, it must be noted that they were self-selecting volunteers and, although indicative, should not be considered as representative of all students, particularly as most were mature students. The interviewees are, however, a group from a specific background, with a particular financial situation and who are a key concern of policy. A list of the interviewees' study details are included in Appendix C.

1.86 Interviewees were asked if they wished to be interviewed face-to-face or by telephone. Most opted to be interviewed by telephone. Each interview was recorded in note form on the interview schedule and by audio recorder. Recordings were then transcribed and checked. All interviews were anonymous, confidential and voluntary.

1.87 The interviews were semi-structured, allowing a format to be followed but which enabled interviewers and interviewees to expand on answers as deemed useful. In addition to gathering background information, a series of questions asked interviewees about their financial situation and their attitudes to their own and general financing of HE study grouped chronologically:

• Pre-entry to university
• During university
• After university

1.88 Of the 52 interviews, 40 were female and 12 male. The youngest interviewee was 19 and the oldest 59. The age range and distribution of interviewees is presented in Table 1.1 below. Mature students are defined as being 25 years old or over: 37 of the 52 were therefore mature students.

Table 1.1: Age range and distribution of interview sample

1.89 The interviews were analysed both quantitatively and qualitatively. The quantitative data included age of respondent and ethnicity. The qualitative data was coded and then sorted using NVIVO 8, a software package especially designed for qualitative data analysis.

A Brief Comment on the Research Plan

1.90 Part of the brief of the new study was to improve on the research design of the previous 2004-05 study. With the agreement of the Scottish Government and the support of the Research Advisory Group, the new study was therefore deliberately ambitious in a number of ways:

• To be more comprehensive, it attempted to envelop all Scottish-domiciled HE and FE students in the main survey.
• To reduce costs and efficiency, it attempted to conduct the main survey as web-based.
• To provide more depth to the analysis, it sought to complement the quantitative data with qualitative material.
• To assess the additional costs of study, it sought to provide a control group of non-student young Scots.

1.91 The execution of the research plan largely achieved these aims. More students were included in the main survey of the current study, the main survey was web-based, a series of interviews were conducted with HE students and a control survey administered to a random sample of young Scots.

1.92 Nevertheless, the new research plan had constraints, many unforeseen. Firstly, for technical reasons, administering a web-based survey was easier in HEIs than FE colleges, and so its scope ultimately limited. Addressing these limitations was time and resource intensive, with consequences for the study's effectiveness in terms of both process and outcomes. The qualitative research, however, was successful and produced the expected insights, though its execution was affected by the scheduling delays incurred from the problems administering the main survey. The control survey too was more difficult than expected. Instead of 'piggy-backing' on an existing and successful survey of young Scots, it had to be implemented as a new, stand-alone project with insufficient resource support. Its subsequent data generation though is usefully indicative.

1.93 Both the process and outcomes of the new research design are discussed in more depth in the Conclusion of this report, and recommendations for improving future research design are made.

Outline of the Report

1.94 Following this outline of the background to the study and the study's research design, the next sections report the findings of the study. Overall, the findings are disaggregated by type of study; whether HE or FE. Within each, the findings are then broken down by income, expenditure and debt and savings for both types of student. For FE students, only data for full-time students is presented. For HE students however, there are two further disaggregations. Firstly, the analysis distinguishes between full-time and part-time students; secondly, the analysis distinguishes between students studying at sub-degree level and those studying at degree level only. Data for both is then combined.

1.95 In terms of the report's structure, the next three chapters report the findings for HE students' income, expenditure and debt and savings sequentially. The same data coverage for FE students is then reported in a single chapter. The subsequent chapter reports the attitudes and behaviour of students in relation to their finances. These findings are then compared to: firstly, the data for the control survey (both students for data triangulation and non-students as a control group) and, secondly, the previous Scottish study. The final chapter offers a summary of the findings plus identifies research issues for further analysis and indicates a framework for subsequent research.

« Previous | Contents | Next »