A government consultation paper proposes that non-UK EU students need to have lived in the UK for three years in order to access loans or grants, instead of the current three year requirement.
Nottingham’s student population is made up of around 28% European and international students. These proposals would come into effect 2016-17 and would not affect EU students’ access to tuition fee loans and those with settled status, such as refugees.
EU borrowers are half as likely to pay back their loans.
The proposals should bring UK rules regarding living cost support for EU students in line with rules for visiting students in other EU countries, and are being explored over concerns over an EU student influx in 2015-16 when student number controls are relaxed.
The living cost support bill for EU students has risen from £75 million in 2009-10 to £162 million in 2012-13. The majority of payments are maintenance loans but the report said that, “EU borrowers are more likely to have failed to supply details of their income and are more likely to have been placed in arrears than English borrowers,” and are half as likely to pay back their loans as UK graduates.
Students from Romania, Hungary, France and Portugal are most likely to be affected by these proposed changes.
The paper adds that EU students receive more financial support on average than UK students as they are more likely to be over 21 and from poorer backgrounds and so are eligible for means-tested support.
It is estimated that the government would save £7 million a year if 1,000 EU students were not offered living cost support.
Students from Romania, Hungary, France and Portugal are most likely to be affected by these proposed changes, according to the paper.
A Romanian UoN student commented, “If these changes are to go through, the government need to be very careful in making sure no student slips through the net and is left without enough money to live. It would save so little money, could leave students cash-strapped and could put off EU students – I don’t think it’s worth it.”
Caroline Chan
Image: Wouter de Bruijn via Flickr