A university education is often hailed as a pathway to opportunity, but for many students, gaining admission is only the first hurdle. The greater challenge lies in affording to remain enrolled as tuition fees and living costs continue to rise.
Financial Pressures on Students
A new report examining the financial pressures facing Australian university students reveals that one in three surveyed students reported struggling or severely struggling with their finances. This issue is particularly acute among international students, Indigenous students, those with disabilities, and those living alone.
Research Methodology
Researchers analysed financial support policies at 41 Australian universities, surveyed nearly 900 students, and interviewed about 50 students and staff members. Participants were recruited via university networks, student unions, and social media.
Key Findings
The study found that 51% of students experienced food insecurity, 64% struggled with housing affordability, and nearly 45% said financial stress negatively impacted their studies. These findings align with other surveys showing students skipping meals to cope with costs.
Financial pressure is also shaping pre-university decisions, with some young people delaying study, planning part-time enrolment, or living at home to reduce expenses.
Coping Strategies
The most common coping mechanism is paid work, with 74% of surveyed students relying on employment to cover living expenses. About 36% worked more than 20 hours per week. While work can foster independence, long hours often conflict with study time, attendance, and rest. One student reported skipping lectures or tutorials due to work commitments.
Students also borrow from family and friends, take out loans, delay medical care, reduce study loads, or postpone graduation. As one student said: "Every day I think about money… I find it hard to sleep."
Government Support
Government payments like Youth Allowance, Austudy, and ABSTUDY provide essential support but fall short of actual living costs. For instance, Youth Allowance for a single adult not living with parents is about A$339 per week, while the poverty line for a single adult in 2025 was roughly A$584 per week, leaving a gap of around A$245. In 2026, Anglicane found no affordable rental listings for Youth Allowance recipients.
Welfare advocates argue many eligible students are excluded, including international students and many domestic students due to age, living arrangements, or parental income. HELP loans cover tuition but not daily expenses.
University Support
Most universities offer financial assistance such as scholarships, bursaries, emergency grants, hardship loans, food programs, textbook support, and referrals to external services. However, only 22% of surveyed students were aware of available support, and nearly half of those found the application process difficult or unclear. Some schemes require upfront payment with reimbursement, which students cannot afford.
Students and staff cited hard-to-navigate webpages, complex eligibility rules, extensive documentation, delays, and stigma as barriers to accessing help.
Recommendations
Financial literacy programs have limited impact when the core issue is insufficient income. Government payments should reflect actual study and living costs, including rent, food, transport, healthcare, and course requirements. Placement support must be equitable across disciplines and not limited to current government payment recipients. Additional subsidies for travel and parking are needed, along with flexible placement schedules to allow part-time work.
Universities should streamline access to support with clear, plain-language information and simple application processes. If Australia aims to build a skilled, diverse workforce, it must better support students through their studies rather than leaving them to manage alone.
