A review of the student grants scheme is to take place to try to fix the flaws in the system.

As pupils in the island received their A-level results, there were serious concerns that the cost of living at university places greater strain on Manx students than their English counterparts.

Department of Education, Culture and Sport member Lawrie Hooper MHK told the Examiner that a comprehensive review of the student awards scheme would take place later this year in an attempt to improve the system to ’help as many people as possible’.

Under the current system, the department pays the tuition fees of Manx university students whose household income is less than £100,000, with students paying a £2,500 contribution in the form of a loan with 5% interest.

Students can also access a means-tested maintenance grant to pay towards day-to-day living expenses. That is separate from tuition fees.

Students who attend a London university can get a maximum £6,000 grant from the government, while those who go to other UK institutions can receive a maximum of £5,500. They don’t have to pay grants back.

But the National Union of Students estimates annual living costs at £12,000 a year, with rent outside of London averaging £4,989 per year.

The average paid out by the department for maintenance grants last year was £4,145 per student. The department rejected 468 applicants for maintenance.

Mr Hooper told the Examiner that about a third of all students the department pays fees for receive maintenance grants and that ’the lowest earners get the support’.

But Kathryn Sharman, aged 20, of Douglas, who is due to begin her third year at university next month, said that it wasn’t enough and had led to enormous strain being placed on her and her family, who are just above the threshold for the support required.

She added: ’The lack of support from the government has placed stresses on my family.

’I feel like I am being punished for being working class.

’I feel discriminated against because I’m not rich enough to do it all myself, yet not poor enough to be considered in need of help. My family and I struggle to fund university because we come from an average income.

’The government should help encourage myself and other working class students to go to university to better ourselves. Yet they don’t because they think we should be able to manage it financially even though it’s a struggle.

’It’s like the system is setting us up to fail.’

In England, all students can access more money for living expenses. However, this is done in the form of a loan, which adds to their debt because it must be paid back.

A student in England whose household income is £30,000 would receive an £8,076 maintenance loan, while a Manx student with the same household income would receive £1,905.

Non-repayable maintenance grants are also available in England for those whose household income falls below a certain level.

Mr Hooper said he didn’t believe Manx students could access loans in the same way as their English counterparts.

When the Examiner checked with a lending specialist at a Douglas bank, he informed us that banks in the island would usually lend money only to parents, not to students, adding it was also unlikely a bank in the UK would issue a loan to a Manx student.

Kathryn said that the stress of finances while at university had led to her mental health and work suffering. She showed us a letter from a mental health specialist who assessed her at the Royal Infirmary in Hull.

It states: ’Kathryn is currently ineligible for the same student finance as UK students due to her residing in the Isle of Man. This has put additional strain and stress upon Kathryn, leading to a decline in her overall mood, increased stress and some difficulty concentrating.

’These factors appear to be catching up with Kathryn and subsequently having an impact on her ability to sufficiently prepare for her academic assessments.’

Kathryn has spoken to fellow and former Manx students who have experienced difficulty with the system.

They include a nursing student who relies entirely on the maintenance grant, which leaves her with £300 a month to live on after paying her rent and, due to nursing placements, she cannot work to earn extra money.

stress

The student said: ’They [the department] don’t seem to have a clue what they are doing or the effect it is having on everyone. I work 60 hours a week when I’m on a placement just to be able to feed myself and pay the bills. Uni is enough stress without having to worry about money.’

Another student said how their father had taken out a loan to pay the difference in living costs and this had cost him thousands of pounds.

Mr Hooper said: ’We want a better system, but must remain within our budget of £10m. Money obviously isn’t unlimited and to get more funding, we’d need a business case to take to Treasury.

’I fully agree that the living costs are high and that’s a big challenge. We are also using a system which has been in place for 20 years. The levels of money have changed, but it is pretty much the same format.’

As part of the review, the department is planning a public consultation for this autumn.

Mr Hooper added: ’I really urge people to get involved with this. We want to improve the system for students and their families.’

Kathryn has suggested some ways to alter the system, including making fees fully repayable in loans while providing more money for maintenance grants.

She said: ’It would cost more post-university, but it would be fairer while at university and people wouldn’t feel like I feel. I also think it doesn’t make much sense.

support

’The government is spending so much money in rebuilding Castle Rushen High School, yet fails to support those who most need it once they finish A-level and head to university.’

However, a full loan system is not a plan Mr Hooper believes would be beneficial to the island or make financial sense.