This document summarizes a study that compared the experiences of students who graduated from university in 2014 under the old student finance system to those who graduated in 2015 under the new 2012 system with higher fees and debt levels. It found that students from working-class backgrounds who attended a Russell Group university tended to do well under the new system, with many able to save money, gain work experience, and secure graduate jobs or pursue further study. However, students from both working-class and non-working-class backgrounds at a post-1992 university struggled more, with many experiencing financial hardship, anxiety about employment prospects, and considering non-graduate jobs after graduation. The changes to student finance since the study may have exacerbated these inequalities.

1. The Usual Suspects? Which graduates are more
disadvantaged under the 2012 student finance system in
England?
Paper presented at SRHE Annual Conference,
7th-9th December 2016.
Dr Katy Vigurs, Dr Steven Jones, Dr Diane Harris, Julia Everitt

2. Institute for Fiscal Studies Report R93 (2014)
‘We estimate that students will leave university with nearly £20,000 more
debt, on average, in 2014 prices (£44,035 under the new system
compared with £24,754 under the old system).’ Crawford & Jin

3. Inequalities? Loans for fees &
maintenance (2012-2016)

4. Impact of debt on families
(West et al. 2015)
‘Almost all parents felt that they should contribute
financially to their children’s higher education costs, and
most with the means to do so were providing more than
the government’s maximum assessed household
contribution. However, for some parents this was stressful
and caused financial difficulties. For other parents, their
limited financial means resulted in them being unable to
contribute, even though they wished to do so.’ (p31)
‘One recurring theme was a lack of information about the
fact that the government financial support did not cover
their children’s living and accommodation costs. The cost
came as a surprise to some parents… For another
mother, the financial challenges had caused significant
stress...’ (p31).

5. Anxiety about unequal graduate
outcomes
Regular stories in the media (based on a range of research reports) that
raise concerns about student debts, graduate jobs and the value of a
degree.

6. Wider Context for Uncertain Futures
(Howie & Campbell, 2016)
Downstream effects of the Global Financial Crisis (GFC)
The GFC gave way to conditions of precarious socio-
economic life
Young adults face declining full-time job opportunities,
increasing competition in employment, where
qualifications alone lose out to experience
Precarious employment situations have coincided with
increasing costs of debt-based forms of HE payment
In response to neo-liberal hardships, young adults are
expected to become rational, autonomous, choice making,
risk aware, prudential, responsible and enterprising (Kelly,
2015)

7. Graduate Trajectories
(Roberts et al., 2016)
‘Beck (1992) describes a post-traditional age in which
predictable or ‘normal’ trajectories are disrupted, to
be replaced by ‘do-it-yourself’ biographies:
responsibility is thrown onto the individual to achieve
‘self-realization’ (Beck and Beck-Gernsheim 2002:
26), including making decisions about career, leisure
and education.’ (p321)

8. Impact on transitions to adulthood
(Arundel & Ronald, 2015)
Transitions to adulthood are a key period for individual
development, but also contribute to processes of social
stratification
Transition dynamics today: increased complexity,
postponement, diversity & individualisation - Precarity in
transition pathways
Rise of ‘yo-yo’ and ‘boomerang’ transitions
Uncertainty has reshaped routes to adulthood
Young adults develop coping mechanisms… but which
young adults have to do this and what sorts of coping
mechanisms do they create? What do these strategies
rely on?

9. Inequality in Graduate Employment
(Abrahams, 2016)
Mass expansion in UK HE sector = diversified student body
In 2013, more students from non-traditional backgrounds
entered HE than ever before (higher fees didn’t put people off)
But HE sector increasingly stratified – those from non-traditional
backgrounds less likely to study at Russell Group HEIs – may
have impacts on these individuals’ future employability
Going to HE is not the key to equality – there is inequality in
graduate outcomes (i.e. not equal chances of securing graduate
jobs)
Be wary of ‘the myth of meritocracy’ because it ‘normalises
inequalities, converting them into individual rather than collective
responsibilities.’ (Reay, 1998: 1)

10. Not all doom and gloom?
The media also report ‘good news’ stories about the value of higher
education and positive graduate outcomes (again, based on a range of
research report and national data sets).
So should some groups of students, graduates, families
and universities be concerned?

11. Focus of Paper
Should we have concerns about inequalities in graduates’
transitions and outcomes in the wake of higher university fees
and higher levels of student debt?
• Do graduates appear more disadvantaged under the 2012
student finance system in England?
• If so, what does this disadvantage look like?

12. Comparing graduate transitions
across different student finance
systems
This paper compares the
views and decision-making
of 37 pairs of students from
two different universities
(Russell Group and Post-
1992 HEI) in central
England.
One half of each pair
graduated in 2014 (lower
fees, lower debt) and the
other half graduated in 2015
(first generation of students
to have paid £9000 per
year).
Each pair was from the
same social background,
and had studied the same
degree subject/discipline.

13. Sample
One Post-1992
HEI (Million+)
Interviewed
graduating
students in 2014
& 2015
One Russell
Group HEI
Interviewed
graduating
students in 2014
& 2015
WP indicators:
4 pairs
No WP indicators:
10 pairs
WP indicators:
14 pairs
No WP indicators:
9 pairs

14. 74 students (pseudonyms)
37 peer pairs
Euan &
Lawrence,
Ellie & Annie,
Neve & Claudia,
Kim & Joanne
Alfie & Dylan,
Poppy & Ari,
Gemma &
Sophie,
Sasha &
Veronika,
David & Jamie,
Bella & Adelle,
Olly & Mark,
Colum & Craig,
Fliss & Siobhan,
Ash & Dan
Munnas & Max,
Abdul & Yasir,
Debi & Tahira,
Sahar & Cate,
Lola & Rachika,
Amelia & Sangita,
Will & Rob,
Lydia & Jayden,
Anav & Martyn,
Lucie & Shaila,
Sanjiv & Vazir,
Grace & Helen,
Fahim & Chris,
Chloe & Kidjana
Lexi & Jamilla,
Peter & Adrian,
Nia & Naomi,
Angus & Tom,
Sian & Candice,
Jake & Charlie,
Anna &
Francesca,
Lindsey &
Annabel,
Verity & Olivia

15. Comparing 2014 & 2015
Graduates. Much difference?
Headline % across
whole sample
2014 2015
Saved £ at university 14% 16%
Professional work
experience whilst at
university
41% 32%
Graduate job anxiety 57% 59%
Secured graduate job 16% 19%
Seeking non-graduate
job after graduation
49% 49%
Studying a
postgraduate
qualification after
graduation
16% 16%

16. Participants by
HEI type & socio-
economic
background
% Saved
£ at uni
%
Profession
al work
experience
% Graduate
job anxiety
% Got a
graduate
job
% Seeking
non-graduate
job
% PG
study
after
graduatio
n
Post-92
WP
n8
201
4
0 75 75 0 50 0
201
5
0 25 75 0 100 0
Post-92
Non-WP
n20
201
4
10 20 60 10 40 30
201
5
0 20 80 10 60 10
RG
WP
n28
201
4
14 43 43 29 50 14
201
5
43 21 43 29 36 29
RG
Non-WP
n18
201
4
22 44 67 11 56 11
201 0 67 56 22 33 11
% broken down by HEI type & student background:
Inequalities?

17. Which groups did well in 2015?
WP students at RG university
Why were so many able to save money whilst at
university? How did this affect their graduate trajectories?
How did so many secure graduate jobs prior to
graduation?
How were so many able to start postgraduate courses
straight after graduation?

18. “[Finances are] the number one
thing in deciding what I’m going to
do next, it’s just whether I can afford
it or I can’t… I will go to do my
masters either this year or next. I
have money saved up but I’m just a
bit off… I’ve been able to live
comfortably as a student whilst
saving for my MA.”
Max – RG WP – 2015 – BA Hons
“Paying for my Masters isn’t a concern because I have been saving up
and … there is a new postgraduate bursary scheme available for £10K
which I’ve applied for too and it’s based on geographical location and
other factors … If I didn’t [get that], then it would just mean that I fund
myself, which wouldn’t be ideal, but I really do want to do further
education so I would just, you know, find a way.”
Rachika – RG WP – 2015 – BSc Hons
“I am comfortable with my financial
situation. Obviously I planned financially
to leave university and I’ve got six
months’ worth of money saved for my
bills before I start worrying. Erm, you
know, with a couple of [graduate job]
offers on the table, I’m not really
concerned about the financial side of
things.”
Martyn – RG WP – 2015 – BSc Hons

19. “The university is really helpful
because I got an internship last
summer with Lloyds and the
university has a scheme where they
provide you with funding for work
experience; that could be travel or
accommodation. I’ve now got a
graduate job as a tax consultant
with an accountancy firm in
London.”
Yasir – RG WP – 2015 – BA Hons
“I’ve actually got a job… I’m going to be a trainee solicitor but that doesn’t
start until 2016, I have another course to do in January this coming year.
So I have some free time before January. I’m going to work at Waitrose in
my home town until then. I’ll maybe try and get an office job as well just
to get a few months’ work. I’ve got Waitrose provisionally. ”
Kidjana– RG WP – 2015 – Law LLB
“I’ve applied for quite a few jobs. I’ve
got two different offers to think about at
the moment; one is in a medical field, it’s
to do with doctors’ surgeries… I worked
at an NHS hostel for two years and I do
Air Cadets so I’ve got a load of skills
outside [of my degree].”
Martyn – RG WP – 2015 – BSc Hons

20. “I want to get accepted on a
Masters course given that I get
funding for it. I’ve not done much
research on the job market but I
want a part-time job over the
summer … I’ve got a lot of
experience in schools … hopefully
when I do a Masters course I’ll be
more, definitely more sure of what I
want to do [in the future].”
Sangita– RG WP – 2015 – BSc
Hons
“I’m going to do a PGCE because I know I can get student finance … and
then later on I can go back and do a Masters when I’m more financially
secure. And also at [the Post-1992 University in same city] they do a
bursary for PGCEs as well so I thought, “Right that’ll really help if I get
that bursary”. They’ll pay my tuition fees and they also give me
maintenance as well so I was like “Yay”. I can survive.”
Jayden – RG WP – 2015 – BA Hons
“I’ve applied at [this University to do a
Masters] and received a conditional offer
and I’ve also applied at [the post-1992
university in the same city] and I’ve got
an interview for that. I’ve got the two
options.”
Rachika – RG WP – 2015 – BSc Hons

21. Which groups struggled in 2015?
Non-WP & WP students at Post-1992
HEI
None were able to save money. 50% of non-WP
students disclosed suffering financial hardship. 40%
of non-WP students were moving back home.
What contributed to high levels of anxiety about gaining
graduate employment?
Why so many seeking non-graduate jobs?

22. “During university I struggled
financially because I’d not applied
for the loan because of my religious
reasons, because I didn’t want to be
in more debt because of the
interest. So I didn’t apply for the
loan so I just had a small
maintenance grant but because I’m
travelling to a different city [it’s
difficult].”
Ari– Post-92 - Non WP – 2015 –
BSc
“I guess because student finance doesn’t quite cover my living costs, this
semester it’s been okay because I’ve had some left over and because I
have a job on campus, I’m able to like fund myself. It’s not too bad but
last year and my first year, I struggled with money quite a bit… ”
Siobhan – Post-92 – Non WP – 2015 – BA Hons
“I’ve always had money concerns. I do
have a lot of money concerns and I’m
not particularly great at saving. I have
been meaning to put a little bit of my
student loan away each time for that
period where I don’t have a job and I’m
not in uni and so far I have saved none
of it.”
Jamie – Post-92 – Non WP – 2015 –
BSc

23. “I don’t feel like I’ve got as much of
an advantage on those who don’t
go to university, as say ten years
ago. I don’t know if that’s right or
not… it might be my degree as well;
I just don’t think there’s an
availability of jobs. People say “why
don’t you go into teaching?” but I
mean I’m not confident going into
that area.”
Mark – Post-92 – Non WP – 2015 – BA
“I’ve tried to get a few work placements but when you’re in uni firms try to
fob you off. I’ll tell you what would be good, a module on writing personal
statements and applying and when to apply and what’s available,
because we just write a personal statement but then you don’t really
know what to put in and what not to put in. I mean the limit was ten
thousand characters. I had no idea that was coming nor what two
thousand words to put.”
Craig – Post-92 – Non WP – 2015 – Law LLB
“I think it’s so uncertain, like you’ve been
at uni for three years and now
everything’s going to change, even
though you’ve got the ambition and the
plan for the future, you don’t know
what’s going to happen… uni is a bit of a
safe haven and then you go out, you
don’t know what’s going to happen, you
don’t know whether you’re going to be
broke.”
Joanne – Post-92 - WP – 2015 – BSc Hons

24. “Hopefully I’ll get a job within the
industry but, being realistic, that
might not happen initially or it might
take a while because of the current
climate… like I said before, I’d be
happy to take a job that isn’t
actually in the industry to at least
get paid obviously. ”
Lawrence – Post-92 - WP – 2015 –
BSc
“I’m going back home because of personal circumstances, it has become
the most viable option because of money. I need to keep my bank level
up… the plan is to move back home to live with my parents and find my
first full-time job to save up for the deposit on a house… I just need to be
secure, in my personal circumstances that’s the main consideration at
the moment rather than being a freelance creative kid.”
Dan – Post-92 – Non WP – 2015 – BSc
“I panic all the time. Because I live at
home and I’d like to move out but then I
can’t do that on just a McDonald’s wage,
or I could but I feel like I’d be stuck in
that job forever… I’m like ‘I’ve already
had this McDonalds job for five years’ so
I do panic and think “I’m going to be at
home for the next few years” I don’t
know what I’m going to do.”
Annie– Post-92 - WP – 2015 – BA

25. Change since
the end of this
study
• End of maintenance grants
• Postgraduate loans
introduced (2016-17)
• Brexit
• Tuition fees rise above
£9000 at some universities
(2016-17)
• End of NHS bursaries (Sept
2017)
Further implications for
inequalities in higher education

26. Increasing inequalities?

27. Fairer Future Finance
Systems?‘There is a strong case to be made for student maintenance
loans to cover the realistic costs of higher education, including
accommodation and living costs, given that excessive reliance
on family resources is inequitable (Barr, 1997).’ (West et al., 2015:
40)
‘An extension of means-tested grants should be considered for
students from low-income families in lieu of the current mix of
grants, student loans and university bursaries. Such grants
should be transparent; the amount easy to predict (cf. Baum et
al., 2008), non-discretionary and based on financial need. This
is especially important given that the effects of loans are worst
for students from poor backgrounds with less access to family
support (Barr, 2012). Such a move would protect those with the
fewest familial assets from student loan debt. A system of loans
moves costs into the private domain; it inevitably privileges
some families and their children over others and also makes
young people’s transition to adulthood a highly contingent
process.’ (West et al., 2015: 40)

28. SRHE Project Outputs
https://www.srhe.ac.uk/downloads/vigurs-katy-002.pdf
The SRHE research report can be accessed in full here.
https://www.srhe.ac.uk/downloads/vigurs-katy-003.pdf
The research-informed comic version of the report can be
accessed here.

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