University student finances in 2012 A study of the financial circumstances of domestic and international students in Australia’s universities July 2013 Emmaline Bexley, Suzanne Daroesman, Sophie Arkoudis and Richard James Centre for the Study for Higher Education The University of Melbourne This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. Further inquiries should be made to the Chief Executive: GPO Box 1142 CANBERRA ACT 2601 Ph: +61 2 6285 8100 Fax: +61 2 6285 8101 Email: [email protected] Web: www.universitiesaustralia.edu.au ABN: 53 008 502 930 Contents Acknowledgements ................................................................................................................................................................................ 3 1. The key findings ................................................................................................................................................................................... 6 2. Survey method and sample composition ........................................................................................................................... 11 2.1 Survey method ................................................................................................................................................................. 11 2.2 Summary of responses ................................................................................................................................................. 12 2.3 Sample characteristics and comparison of respondents with national student population .... 13 2.4 Interpretation and reporting of the data ............................................................................................................ 15 3. Student income and sources of income support ........................................................................................................... 16 3.1 Grouped annual income ............................................................................................................................................. 18 3.2 Income support and supplementary benefits .................................................................................................. 21 3.3 Income support for Indigenous students ........................................................................................................... 21 3.4 Student services ............................................................................................................................................................... 24 3.5 Support from parents and partners ...................................................................................................................... 24 4. Expenditure and debt .................................................................................................................................................................... 28 4.1 General and study-related expenditure.............................................................................................................. 28 4.2 Changes in expenditure: 1974 to 2012 .............................................................................................................. 30 4.3 Overall annual budgets ................................................................................................................................................ 31 4.4 Assets and saving ............................................................................................................................................................ 33 4.5 Fees and loans .................................................................................................................................................................. 37 4.6 Estimated levels of debt on completion of study .......................................................................................... 39 4.7 Attitudes toward a HECS-style loan for living costs .................................................................................... 42 5. Employment and study ................................................................................................................................................................. 44 5.1 Patterns of paid employment ................................................................................................................................... 44 5.2 Indigenous students in employment ..................................................................................................................... 44 5.3 Spread of hours work................................................................................................................................................... 46 5.4 The impact of employment on study .................................................................................................................. 49 5.5 Assistance from employers........................................................................................................................................ 52 6. Some effects of students’ financial situations .................................................................................................................... 55 6.1 Extent of concern about finances .......................................................................................................................... 55 6.2 Effects of low income ................................................................................................................................................... 56 6.3 Study-related costs ......................................................................................................................................................... 60 6.4 Effects of financial circumstances on choices ................................................................................................... 62 6.5 Mobility and financial circumstances ..................................................................................................................... 66 Universities student finances in 2012 1 7. Supplement: The financial circumstances of Indigenous students ........................................................................ 67 7.1 The sample ......................................................................................................................................................................... 68 7.2 Indigenous students’ income and patterns of expenditure ...................................................................... 68 7.3 Employment and study ................................................................................................................................................ 75 7.4 Effects of Indigenous students’ financial situations ........................................................................................ 78 8. Supplement: The financial circumstances of low SES students ............................................................................. 80 8.1 The sample ................................................................................................................................................................................ 80 8.2 Student income and sources of income support – low SES students ............................................... 81 8.3 Expenditure ........................................................................................................................................................................ 86 8.4 Employment and study ................................................................................................................................................ 87 8.5 Effects of low income ................................................................................................................................................... 89 9. The financial circumstances of International students .................................................................................................. 93 9.1 Sample .................................................................................................................................................................................. 94 9.2 Student income and sources of income support .......................................................................................... 95 9.3 Student expenditure and levels of debt ............................................................................................................. 98 9.4 Employment and study ............................................................................................................................................. 101 9.5 Effects of students’ financial situation ................................................................................................................ 102 References ............................................................................................................................................................................................. 106 Appendix: Detailed sample characteristics ......................................................................................................................... 107 Universities student finances in 2012 2 Acknowledgements Universities Australia commissioned the Centre for the Study of Higher Education (CSHE) at the University of Melbourne to undertake the analysis and reporting of data gathered by Australian Survey Research (ASR) for the