£8100 minimum income for students
SCOTTISH students should be entitled to a minimum income of £8100 a year, a major review of student support has found.
Experts have recommended the support is given through a mixture of loans and means-tested bursaries, with those studying at college and university given equal access to financial help.
The proposal is part of a series of recommendations following a year-long independent review into student support, commissioned by the Scottish Government.
The report also calls for student loans to be made available to college students, and for these to be written off for those who then finish university.
Experts recommend college students – currently ineligible for student loans – can access a bursary of up to £4050 or a £4050 loan.
Under the proposals, university students under 25 would retain current current bursary levels with loans increasing by around £500.
The report states the “major change in approach” would give students the equivalent of the Scottish Government’s Living Wage and cost an extra £16million a year in bursaries.
The option was one of three considered – keeping the status quo for bursaries and increasing loans at no immediate extra cost or having a 50/50 bursary and loan split for both college and university students, costing up to £123m a year extra in bursaries.
The report endorses SNP manifesto pledges cut the loan writeoff period by five year to 30, keep interest rates low an up the student loan repayment threshold to £22,000 – urging Ministers to consider raising it to £25,000.
Further recommendations include creating a new payment for students do not lose out on benefit entitlement due to loans or bursaries, retaining discretionary funding and giving more flexibility on when money is received.
Review group chairwoman Jayne-Anne Gadhia, Virgin Money chief executive officer, said: “Our recommendations 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. And in return, more students from diverse back- grounds will 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 helping 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.”