The issue of financial barriers has been studied by several researchers, especially in relation to widening access to HE to encourage more applications from lower income and lower social class groups. They show that young people from lower socio- economic groups are less likely to go to HE in general, and that financial barriers are more likely to act as a deterrent for them, compared with higher groups.1 However, the evidence on the direct effect of student finance and funding on specific groups is not clear cut. The cost of studying in HE is usually seen together with other concerns, such as having to work while studying, getting into debt and managing on a low income. There is little research on how student finance specifically affects the progression to HE for minority ethnic groups, or those from lower socio-economic and minority ethnic groups in particular. But, in a recent study of school leavers and further education students (who were working towards HE entry qualifications) about their attitudes to debt, it was found that minority ethnic groups were among a number of identified prospective entrant groups
identified as being the most debt averse, and also Muslims, especially Pakistanis.1
Our survey of potential HE entrants showed that the majority (around 60 per cent in total) were put off attending university in some way, by the costs involved, but that the sample of minority ethnic students were less likely to be put off than White students (57 versus 68 per cent).2 Cost was even less of a potential deterrent for Pakistani and Indian applicants than others, but this may relate to their age. Older applicants were more likely to feel put off, and Pakistani and Indian students tend to be the younger groups. Additionally, around 40 per cent of individuals felt that they had been put off attending a particular institution because of the costs involved (presumably mainly transport and/or accommodation costs). This figure was more or less the same for all ethnic groups including Whites, but Chinese/Asian Other were the most likely to have their institutional choice influenced by potential costs (see further discussion below in section 4.7, on other factors influencing choices of institutions).
As mentioned above, getting into debt is a major concern about the student experience. A recent small update of the student income and expenditure study (but focused on young students on full-time courses only) shows that in 2002/3, minority ethnic students are a student group least likely to take out a loan (76 per cent compared to 89 per cent amongst the overall population).3 Other ways in which the patterns of minority ethnic student income and expenditure differ include having a lower overall income than White students, being more likely to live at home and having a greater reliance on paid work as a source of income. They were also shown in that study to be more likely to come from lower socio-economic groups than White students on average. Living with parents affects the amount of student loan which individuals are eligible to take out. The greater availability of work in the London area is an important factor to consider when looking at effects of finance on HE decisions by minority ethnic groups, as a large number of them study in the capital (almost half, over twice as many as White students).
Financial disincentives work alongside other factors, such as attitudes to the labour market, awareness and knowledge of student financial arrangements, and funding and family support. The different financial situation of many individuals from minority ethnic groups compared to White students undoubtedly means that their attitudes towards debt and the costs of studying
1 Callender (2003).
2 This is different from the Callender research (but samples and questions asked in the surveys were different).
3 Callender and Wilkinson (2003) on 2002/03 Student Income and Expenditure Survey.
are different. Then there is the aspect of ‘social debt’ to consider. Although we have no specific evidence from our research to expand upon this, some people have suggested that as minority ethnic students are more likely to be funded through university by parental contributions (from their own savings) than White students (see later discussion on financial support, section 5.4), they may feel they will owe more of ‘a social debt’ to their parents. They may feel they should pay something back to their parents in kind, rather than financially (eg helping younger siblings get to university, looking after older relatives), or feel they have to live up to family expectations.
One can only speculate at this stage about what the effect of the proposed changes to student finance will be on minority ethnic groups in particular, as there is little in the way of good research evidence on which to base a view. Entry to HE, and the costs of studying, are clearly affected by socio-economic class status, and, overall, minority ethnic student groups are more likely to come from lower socio-economic class backgrounds. But it is sometimes hard to separate factors of influence associated with lower class, from those associated with particular ethnic groups and, as shown below, there are problems applying the conventional measures of socio-economic class to the minority ethnic population. All in all, though, it does not appear from the research evidence about student finance available to date, that the likely increased debt students will have in the future will, by itself, have a significantly greater negative effect on decisions to take part in higher education by minority ethnic than White students. However, the role of ‘social debt’ in this equation needs to be fully considered, and we would recommend that issues around the effect of the changes in student finance are carefully monitored by ethnic group.