MINISTERS have promised to consider proposals for a new “social contract with students”, after an independent working group presented the Scottish Government with plans for a radical shake-up of further and higher education funding.
At the top of a list of options the group has suggested is a call to give students a guaranteed minimum income of £8100 a year, funded through a mixture of loans and means-tested bursaries, depending on circumstances.
Another major recommendation is that student loan debt accrued while at college should be written off if the recipient continues their education at university and goes on to graduate.
The group suggests college students should have access to a bursary or loan of up to £4050 per year.
There is also a call for students who claim benefits to be given help to make sure they don’t lose out purely because they have become entitled to loans or bursaries.
Although details about the call for a minimum student income were reported over the weekend, yesterday was the first time the full report has been seen, and the first formal response from ministers.
The experts, led by Virgin Money chief executive Jayne-Anne Gadhia, were tasked with looking at what financial support was available to all students and whether it met the needs of the poorest and most vulnerable.
Proposals from the group included increased means-tested bursaries; enhanced student loan terms and a higher repayment threshold; and common systems of administration between colleges and universities.
All the options put forward by the experts had to take into account commitments made in the SNP’s manifesto to cut the loan write-off period to 30 years instead of 35, keep interest rates low, and increase the loan repayment threshold to £22,000 from £17,775.
Gadhia said: “Our recommend-ations are based on a new social contract for students in Scotland.
They would ensure that further and higher education are valued equally, with entitlement to support for students across both sectors.
“In return, more students from diverse backgrounds would have the chance to become successful graduates, for the social and economic good of Scotland.
“The establishment of a minimum student income is an essential step forward in delivering fairness, and to ensure that money is no longer a reason for dropping out of courses.
“Non-repayable bursaries will continue to be focused on those from the lowest income backgrounds. And students can, if they so wish, access high-quality student loans on the best terms in the UK.”
The bank boss also said that every £1 of public investment in further and higher education led to almost £6 of economic impact.
The Minister for Further Education, Higher Education and Science, Shirley-Anne Somerville, said: “The report sets out a number of recommendations that would fundamentally change the way students in Scotland are supported financially.
“It is only right that we now take the time to consider these recommendations in detail, and as part of current and future Budget processes. We will set out our next steps in due course.”
Somerville said the Scottish Government wants to ensure “all students, especially those in our most deprived communities, are provided with the financial support they need to succeed”. It is investing a “record amount” in student support.
National Union of Students Scotland president Luke Humberstone said: “The current student support system is broken. The poorest students in higher education are forced to take the greatest debt, while further education students have no guarantees that they will be entitled to any support.
“We welcome the proposals to give the same level of support to further and higher education students. Whether you’re studying at college or university, the cost of living doesn’t change and neither should the level of student support available.”
Colleges Scotland, the body which represents Scotland’s further education institutions, said it fully backed measures to improve student support funding to ensure all students can attend college, regardless of their personal circumstances or background.
Scotland’s largest teaching union, the EIS, urged the Scottish Government to “take bold steps to ensure student support is enhanced to promote equity of opportunity for all learners”.
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