Over 3,000 Exeter students are likely to be affected by government plans to cut maintenance grants in favour of loans come September 2016.
According to University data released to Exeposé, 4,540 students at the University currently benefit from government maintenance grants. Of this number, 3,072 are first and second-year students most likely to be affected by the change to the loan system.
Of the 4,540 students benefiting from a grant, 67 per cent receive the largest amount of £3,387 a year. Under new plans, students will be entitled to more financial support – £8,200 a year – but this will have to be repaid as soon as the graduate is earning at least £21,000 a year.
Under the current system, grants to cover living costs are available to students from families with incomes of £25,000 or less. 83 per cent of students receiving a grant at Exeter were from state school backgrounds while 17 per cent studied at independent schools.
On 19 January, Labour forced a Commons debate on the proposed maintenance grant plans, which were not a part of the Conservative party’s election manifesto. However, Jeremy Corbyn’s party failed to sway Parliamentary opinion on the scrapping of grants, with the motion passed by a small majority of 14. On the same day, a student protest blocked Westminster Bridge for more than an hour and a half.
Despite the hike in money available through the loan system, there are fears that the increased prospective debt will prevent students from lower income backgrounds applying to university.
Abigail Milne, a second-year English and Drama student, currently benefits from a grant and worries the changes will “make Universities more elitist”. Speaking to Exeposé, she said: “If I hadn’t received the grant I get, I would have seriously reconsidered coming to university, especially to Exeter because the cost of living is so much higher in the south.”
Gabrielle, a second-year English student, relies on her grant money to pay her rent and also has two part-time jobs. While she welcomes the increase in money available through the loan, she is sceptical about the long-term effects. She told Exeposé: “If I’d known about it before I applied to university then it would have hugely put me off going as I would be in much more debt.”
Jack Smith, a first-year Politics and International Relations student, comes from a low-income family and describes the cut to grants as “concerning”. He said: “It’s worrying to think that the government believes it’s OK that the poorest students will leave university with the biggest debt. There’s a reason grants exist, and removing them removes one of the very few reassurances poor students have with university finances.”
University Vice-Chancellor Sir Steve Smith has long been opposed to the cutting of maintenance grants. Speaking in an interview with Exeposé in May, he said: “What puts poorer kids off going to university isn’t so much the fees, it’s maintenance, and if the government were to put £2.7 billion into the hands of students, we’d rather it go into maintenance to support kids from poorer backgrounds.”
On the recent decision to replace grants with loans from September, Sir Steve added: “I am very concerned by the move from maintenance grants to loans. Of particular concern is the impact that this change will have on families with a household income of less than £25,000 per annum.
“The key thing now is to ensure that trends in applications and acceptances to higher education institutions are closely monitored, and the policy reviewed urgently if there is any indication that it is having a detrimental impact on access to higher education and social mobility.”
The Sabbatical team in the Students’ Guild also resist the changes. Guild President Laura-Jane Tiley said: “As a Sabb team, we oppose the Government’s decision to scrap maintenance grants. Even though loans are set to increase, students will be saddled with even more debt and I worry that students from lower income households will not want to apply to uni-
versity.
“Many students rely on these grants and have commented that they simply would not have come to university without them.”
Socialist Student president Natasa Christofidou was one of the Exeter students pictured on the front page of The Independent following the London #GrantsNotDebt protest in November. She said: “Scrapping maintenance grants is a direct attack on the poorest in society. Once again, the Tories have shown how insensitive they are towards disadvantaged students. Punishing these students with even more debt, considering the fact that they’re already financially struggling is completely unjust.
“The government are acting in the least representative way possible, by merely showing concern for the most privileged students in society, whilst turning a blind eye to poverty.”
Speaking to The Telegraph about the cuts, Megan Dunn, NUS national president, said: “The Government has continually denied the scrapping of maintenance grants would negatively affect students, particularly those from poorer backgrounds. This is just not true.
“Students are already facing rising amounts of debt when they graduate, so piling even bigger debts on the shoulders of the poorest students is extremely unfair.”
Despite the resounding condemnation of the government’s decision to scrap grants for loans, Exeter Conservative Association Chairman, Charlie Beaty, is in favour of the changes. He said: “The changes to the maintenance system gives all students, irrespective of household income, access to more cash-in-hand than has ever been available; this positive step means more students will be able to meet the living costs of a university education while simultaneously ensuring there is a strong and competitive economy for us all to graduate into.”
On Tuesday, all Exeter students received an email detailing support for the Hardship and Retention Fund. A non- repayable grant is available directly from the University for students experiencing financial hardship. Provision provided by the fund would be equivalent to £174 per week for a single student and £140 per week for a student with dependents or who is unable to work due to disability.
Free, impartial and independent advice about financial matters is available to any concerned students from the Students’ Guild Advice Unit based in the Forum.
