Financial Problems cause University Drop Outs

Studies show that students are more likely to drop out of University due to financial problems.

Research for the Joseph Rowntree Foundation showed that money problems and the fear of running into debt are the main reasons that young people, from disadvantaged families, are more likely to drop out of university.

The researchers found that better financial help, especially non-repayable bursaries, enables more students to complete their degrees.


The Queensland University of Technology (QUT) report found that students from disadvantaged backgrounds, who received a scholarship or bursary, are 40 per cent less likely to drop out of university.

In 2005 the public account committee found that five years after their last report on university drop out rates, just over a fifth of students still quit their original course.

Education officer, Peta Carter, at the University of Central Lancashire, claims that the university is very keen in preventing students from dropping out. Most universities often experience ‘drop-outs’ after the first year.

“We also appreciate that there is a drop out between second and third years”.

Universities offer a ‘Ones to Watch’ scholarship for students who qualify for the maximum maintenance grant. Students will receive a 300-pound bursary each year, however some universities may pay out more.

For the last two years the University of Central Lancashire has offered one of the best bursaries around, 1000 pounds a year, non-repayable scholarships of 1000 pounds or more are usually offered to high achievers by top ranking institutions such as Newcastle University, Royal Holloway and the University of London.

However it has been suggested than UCLan may be changing its policy so that students receive the government minimum.

Bursaries offered by universitys could help decrease the amount of debt that students will find themselves in once they have graduated. With the introduction of top up fees students must take out larger loans to cover the costs, which leaves them in more debt.

Peta Carter claims that the University offers the full 1000 pound bursary in an attempt to ease their students debt once they have left.

"No University wants to be seen as a cheap university, we charge the highest rate, however we are giving one thousand pounds back to the students each year".

Bursaries also help to encourage students to attend all their lectures and workshops, which helps to increase performance.



Above: Studnets at Staffordshire find out how top up fees and loans affects student life.