Ola Ojuko, a 17-year-old girl from Plaistow, east London, must work out how to finance herself through university. Ojuko hopes to study journalism but does not believe that her parents will be able to support her. She expects that she will have to begin thinking more seriously about how she will manage her finances once she has secured a place at the university of her choosing. While she is confident that a good education will lead to a successful career, she is uncertain whether she will be able to cover day-to-day living costs.
Ojuko’s concerns are shared by many students who will begin their undergraduate degrees this year with the introduction of increased fees. For those from lower-income families, the only option will be the so-called fee waiver, which campaigners for social mobility believe to place a significant disadvantage on poorer students. According to Education Guardian, the amount offered in bursaries by England’s universities will be £70m less than it was in 2009-10. In 2012, 18 higher education institutions and four further education colleges offering degree courses are providing no bursaries or scholarships, choosing instead to put all of their student support into fee waivers. It is mainly newer universities who are making this choice.
From 2015, almost 34% of the total spent on access by government and universities will go on fee waivers, while bursaries and scholarships will account for 38%. Wes Streeting, CEO of the Helena Kennedy Foundation, believes that bursaries are far more meaningful than fee waivers as disadvantaged students risk under performing or dropping out if they do not receive adequate support. The reduction of fees has become more competitive in recent years, due to the government’s creation of a market incentive to attract more students. As a result, universities have to bid against each other for "margin" places, which might result in 15,000 fewer student places altogether in 2012.
According to an expert, the government has designed the competition for university places in a way that institutions have no choice but to offer fee waivers instead of bursaries. This puts financial pressure on students from the poorest backgrounds. The head of the widening participation program at a university concurs with this opinion and says that the waiver system only benefits the Treasury. Some universities have opted to provide upfront financial support instead, such as the University of East London, where students have identified immediate needs such as travel costs and the purchase of books and laptops. Meanwhile, Bedfordshire University is investing more in bursaries than waivers. The director of the Office for Fair Access (Offa), Sir Martin Harris, says that it is still unclear which option is better. Institutions that choose to use fee waivers argue that a lower fee lessens the fear of debt among poorer students. However, the hesitation from Offa to take sides could result in the continuation of the government’s promotion of fee waivers over bursaries. Records indicate that student hardship is having a severe impact, with a high demand for bursaries and financial assistance. A second-year psychology student at Canterbury Christ Church attests to the struggles of paying for basic necessities like housing, heating, and textbooks.
