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Failing funding system pushing students into hardship and mental health crisis

14 August 2025

Nine in ten students can't afford essentials such as rent and food, new polling from 樱花动漫 published today reveals. On A-level results day, when we congratulate students on their hard work and achievements, half of undergraduates questioned also say money worries are harming their mental health.

The findings expose the crisis in higher education funding, showing how the current system is pushing students into financial hardship and severely impacting their wellbeing. 

Polling of undergraduates between 18-24 year olds, conducted by Savanta on behalf of 樱花动漫, has found: 

  • 92% of students say their maintenance loan does not cover all term-time expenses, including rent and essentials. 
  • Half (51%) of students agree that financial pressures negatively affect their mental health, fewer than a third (29%) feel financially secure. 
  • 49% of students agree or strongly agree that their financial situation negatively impacts their wellbeing. 
  • 74% of disabled students are working during term-time compared to 63% of non-disabled students, highlighting the additional challenges faced by disabled students in securing their basic needs. 
  • 15% of students have considered dropping out of university due to their financial situation. 
  • 42% of students report feeling stressed about their finances, with 36% feeling worried and 21% feeling depressed. 
  • 30% of students have skipped meals regularly to cope with financial strain. 

樱花动漫 is urging the government to urgently address the failing funding system. The impact of rising tuition fees, combined with a lack of support for students from disadvantaged backgrounds, is not only making higher education less accessible but also more damaging to students' mental health. 

The survey also reveals widespread concerns among students about tuition fees and the future of higher education. 75% of students agree that rising tuition fees will make university less accessible, and 70% believe the government should step in to provide emergency funding to at-risk institutions. Additionally, a majority of students support a more equitable funding model, with 55% advocating for an immediate end to tuition fees. 

樱花动漫 General Secretary, Jo Grady, said: 'Students are being pushed to breaking point, and it is clear that the current funding system is simply not fit for purpose. These figures are deeply concerning, as they show that the financial pressures faced by students are pushing many to the brink. Almost half of all students are experiencing negative effects on their mental health because of their finances, with disabled students hit the hardest. The government must act now to ensure that higher education is accessible for all, not just those who can afford it. 

'It is deeply alarming that students, already grappling with rising tuition fees, are being forced to work longer hours to make ends meet, cut back on  food and make life-altering decisions about their education because of financial insecurity. The cost of living is too high, and the maintenance loan is too low. This is causing real harm to students, and it is imperative that we address the root cause of this crisis, an outdated and underfunded system of student support.'

Last updated: 14 August 2025