Hardship funding for students: what’s available?

Being a modern day student isn’t a cheap affair.

In 2024, university tuition fees were raised to between £9,250 and £11,100 per year for undergraduate and accelerated degrees, respectively. This has led to more students fighting for their place in courses.

We reveal everything you need to know about the Student Hardship Fund (SHF).

Why are students struggling financially?

The cost of attending university is a big one. Throw in the impact from 2020’s global pandemic and cost of living crisis, and the financial difficulties felt by students have become all too real. 

A 2021 Universities UK survey indicated students across English universities faced more need for hardship funding during the COVID-19 pandemic, with requests rising in more than 75% of universities. 

More recently, the National Student Money Survey 2023 noted the average UK student’s maintenance loan falls £582 short of covering their living expenses each month.

However, this comes as no surprise. The cost of living and petrol prices remain high, there are problems in food production, strains in the labour market and energy prices are still expensive.

Inflation rates experienced an astronomical rise, seeing the largest spike in the UK since 2011, although these have fallen significantly since then. 

But how do students fit in with all of this?  Freedom of Information (FOI) requests from BBC News revealed at 95 UK universities, the number of students asking for emergency cash nearly tripled between 2018–2019 and 2020–2021.

Responses also suggested the amount of hardship funding being received by students nearly doubled in 2021, with many students admitting to BBC News they couldn’t afford rent after bar and retail work dried up during the pandemic.  

The previously mentioned survey from 2023 found that 21% of UK students received hardship funding from their universities in the past year - a dramatic rise from the 12% of students who reported the same during the previous year.

132 higher education institutions responded to FOI requests about their hardship funds from 2018-2021.

And although universities say they have stepped up during the ‘difficult times’ to help, the number of students applying for hardship funding has soared — but individual payments have fallen: 

• In the 2018/19 academic year, 45,850 students applied for hardship funding, and they got an average of £902. In 2019/20, 70,109 students applied and received an average of £811.
• In the 2020/21 academic year, 124,555 students applied for hardship funding, and they each received an average of £826.
• In the 2022/23 academic year, there was a 4.3% decrease in student funding. By 31 October 2023, 1.17 million undergraduates and postgraduate students were awarded a total of £4.81 billion in funding. 

What is hardship funding? 

The Student Hardship Fund (SHF) is provided by universities to help students who are experiencing genuine and unavoidable financial difficulties and are struggling with their living costs.

The amount you can get is decided by your university or college and it will either be paid in a lump sum or instalments. 

How does hardship funding work? 

Although you might be experiencing financial difficulties, to receive the funding you will also need to be one of the following: 

• A student with children, especially single parents 
• A mature student with existing financial commitments 
• From a low-income family 
• Studying with a disability 
• A student that was previously in care (a ‘care leaver’)
• Homeless or living in a foyer 

How do you apply for hardship funding? 

To apply for SHF you will need to contact the student services department at your university, and they will decide whether or not you qualify. 

You’ll need a copy of your letter from Student Finance England showing how much student finance you get, as well as any documents about your finances – such as bank statements and rent details.  

Money from your university or college won’t usually be counted as income when working out your entitlement to benefits or tax credits unless it’s for day-to-day living costs. 

How much do you get from a hardship fund? 

The SHF is a discretionary grant, offering support of between hundreds and thousands of pounds in an academic year which does not need to be paid back.

So, if you think you’re eligible, it’s definitely worth applying for the extra help.

Hardship funds for international students in the UK 

International students from the EU and further overseas can apply for the International Hardship Fund (IHF).

The IHF fund can provide up to £1,000 financial support per year to students experiencing emergency situations or those experiencing a financial deficit over the academic year.  

The fund cannot be used to pay tuition fees. Applicants in their first year of studies can only apply for the fund during their second term.

What to do if your application is rejected 

If your hardship fund application is rejected, some universities allow you to appeal the decision.

If your original application is rejected, or they reject your appeal, there are some alternative financial sources that are worth exploring. 

1. Student bursaries and grants: Before you apply for hardship funding, most universities will require you to have explored bursaries, grants and scholarships. If you haven’t, it will be worth spending some time searching for extra funding that doesn't need to be repaid. 
2. Disabled Students' Allowances (DSA): DSA isn't just for students with physical disabilities. If you have a sensory impairment, mental health condition, learning difficulty or any medical condition affecting your ability to study, you could be eligible for this non-repayable support. 
3. Student bank account overdraft: When you open a student bank account, you’ll likely have a 0% overdraft. This is one of the safest forms of borrowing for students, so if you’re near your agreed-upon limit, it’s worth contacting your bank to see if they will extend it. It’s worth being aware of how these rates change once you graduate.

What does the future hold for students? 

The world of education is a hard space to navigate at present.

The surge in hardship funding requests against the current cost-of-living crisis and rising inflation makes higher education feel as though it is more of a privilege than a right for many students in the UK.  

But even through this hardship, students have said just how important their education is for their future.

Many have said their time at university is a time for growth, building their knowledge and laying the paving blocks for them to land higher salaried jobs than they could have hoped for without a degree.

So, ask yourself, do you want to make the investment? 

Get expert financial advice

With the cost of living placing strain on UK students, hardship funding could help to bridge monetary gaps and enable you to continue and complete your studies successfully, especially if you are experiencing tough financial times or are otherwise disadvantaged. 

While the SHF is granted on a discretionary basis and could range in value between hundreds and thousands of pounds, you may be more likely to be granted assistance if you are a student with children, pre-existing financial commitments, a disability, from a low-income household, or experiencing homelessness.

Let Unbiased quickly connect you with an expert financial adviser who can help you manage your finances as a student.

If you found this article helpful, you might also find our article on saving for private school fees informative, too.