NORTH EAST STUDENTS’ UNIONS SUPPORT REVIEW OF STUDENT FINANCE PAYMENTS

On Monday (2nd February), Sabbatical Officer representatives from the Students' Unions of Newcastle, Northumbria, Durham, Teesside and Sunderland met to publicly announce their support for a new bill passing through Parliament. The bill is the Student Finance (Review of Payment Schedules) Bill, proposed by Luke Charter MP for Outer York Constituency following his work with York Students' Union. 

This bill aims to address one of many challenges that students across the country are currently facing. According to the yearly HEPI Student Academic Experience Survey, over two thirds of students nowadays work part-time to fund their studies, working an average of 13+ hours per week alongside their studies. Student maintenance loan increases continue to fall below inflationary rates, meaning their money goes less and less far each year. Household income entitlements to maximum maintenance loans have also not changed since 2008, meaning thousands of students receive less money than they would have if these entitlements had also kept up with inflation. 

"The online student money coach Blackbullion reported that Northumbria students are short £300 each month of the income they need while studying, and that this gap takes a toll on their wellbeing and academia. A review of student finance is essential to support students from all backgrounds to access higher education." - Ita McCrory, Vice President Education at Northumbria University Students’ Union. 

Amidst all of this, students are expected to manage termly payments of their student maintenance loan in a world which runs on a monthly billing cycle. Students currently receive their loan in 3 large instalments. For the average student, these payments come at a time in their life where they have limited experience managing money. These payments are made to align with the termly cycle of universities. This is despite the fact students are otherwise expected to function on the same monthly billing cycle as non-students, receiving part-time work salaries monthly and paying rent and bills on a monthly cycle also. The timing of student finance payments also mean that students are left without money at crucial times; students who received their finance at the end of September are required to be budgeting that same money over the holiday period, waiting until they receive their next instalment in January. These contradictions mean students often struggle to manage their money accordingly, becoming dependent on overdrafts and other forms of debt to make it to their next instalment. 

The Review of Payment Schedules Bill requires the Secretary of State to hold a review into the current payment schedule to assess whether it is still fit for purpose with the aim to change to monthly payments. The bill also recommends advance payments to students, enabling them to take out portions of their next instalment early for specific circumstances, like paying a deposit for new housing. 

The National Union of Students and Student Unions across the country believe that the introduction of this bill would be overwhelmingly positive for students, allowing them more autonomy over their money management and providing them with more financial security. Students' Unions across the North East met today to demonstrate their support for the bill and they look forward to working with Luke Charters MP in the future to support the bill and drive positive change for students through Parliament. 

“University should be a time that students reflect on positively. Making memories and reaching for their goals, not battling with a finance system that is not fit for purpose. A payment structure that provides stability, ease when budgeting and a reduction in anxiety means that students can focus on what really matters.'' Ade Adeoye, President, Sunderland University Students’ Union.