The Financial Struggle: Exploring the Impact of Cost of Living on Student Dropout Rates

The Financial Struggle: Exploring the Impact of Cost of Living on Student Dropout Rates

University students are feeling the financial burden brought on by the rising cost of living in the UK. Alarming numbers are revealed in the independent UK Student Cost of Living Report 2023, published by Love2shop. A shocking 68% of college students, or 1.9 million individuals, directly know someone who has given up on their education because of the financial crisis. In addition, 1.6 million students, or around 57% of students, are thinking of leaving school, compared to the about 40,000 students who left school during the previous academic year. A generation of young people could be left with an unclear future as a result of this crisis, which could result in universities losing over £40 billion in income.
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A Struggle to Survive: Food Banks and Skipped Meals

The Love2shop survey reveals the unpleasant reality that students face as their educational expenses rise. Approximately 55% of students, or approximately 1.5 million people, have had to rely on food banks to survive while studying. Even more concerning is the fact that 87% of students, or just under 2.5 million people, have been forced to skip meals in order to save money on food. These disturbing figures highlight the scope of the financial burden put on those pursuing higher education.

The Safety Net Gap: Universities Falling Short on Support

While students are clearly experiencing the effects of rising tuition, many believe that universities are failing to provide an appropriate safety net. Surprisingly, 64% of students report receiving no cost-of-living assistance from their universities. Only one in every five students (20%) reports receiving a financial incentive to stay on track. This lack of support places students in perilous situations, requiring them to make difficult decisions that may jeopardize their academic careers.

Gift Cards as a Smarter Solution for Financial Aid

Love2shop, the UK’s biggest gift card supplier, has already partnered with numerous colleges to supply students with gift cards or contactless digital gift cards. These gift cards can be redeemed at over 100 high street and online businesses, giving students the freedom to spend them on essentials. Universities can verify that emergency cost of living payments are used correctly by engaging with retail partners who specialize in the essentials. Surprisingly, only 14% of students have received a voucher or gift card from their university to help with rising living expenses, despite 49% believing that colleges might improve emergency support delivery by using gift cards rather than cash options.

Dazzle is Empowering Students Through Part-time Jobs

Dazzle is committed to empowering students to overcome financial barriers and continue their education without having to consider dropping out. As a reputable commercial cleaning company in London, we understand the financial difficulties that students have when juggling their academics and living expenses. Dazzle gives students with a way to sustain themselves and manage their living expenses by giving flexible part-time employment opportunities with attractive wages. Our goal is to provide a supportive environment in which students can excel academically while also knowing that they will earn a consistent income from working with us. Students may securely manage their educational journey with us, free of financial stress, allowing them to focus on their academics and achieve their objectives.