Variable tuition fees and bursaries, funded by higher education institutions, were introduced in England to promote student choice and provider competition, while bursaries would off-set higher fees and safeguard access. Both have been central to government reforms of student funding since 2004. This article assesses student perceptions of the impact of bursaries on their higher education decisions and choices, and considers the implications for the 2012/13 National Scholarship Programme. It concludes that most students do not think their choices are affected by bursaries although those who: are cost-conscious; expect to receive higher bursaries, especially of £1,000 or more; and attend Russell Group universities are more likely to think bursaries are influential and important. The reconfiguration of institutional aid from 2012/13 may overcome some perceived barriers to the effectiveness of financial support, but is likely to exacerbate others, and create new impediments and inequalities.
The policy contextThe growing importance of, and demand for, HE; the increasing costs of HE driven by its expansion and rising per-student costs, including student financial support; the inadequacy, to date, of cost-side solutions to solve these problems; and constraints on public expenditure have put considerable pressure on the ability and willingness of governments, both in England and abroad, to meet these costs. The challenge for the Coalition, as it was for the previous Labour administration, is to provide a viable student finance system and, in line with their wider HE policy objectives, to create a system of financial support which also encourages access, enhances student choice, and increases competition among HE providers to establish a more diverse, efficient HE sector. The policy response in England (and elsewhere) has been to reduce HE public expenditure and shift costs from government and taxpayers towards students and/or their parents. Underpinning this 'cost-sharing' agenda (Johnstone and Marcucci, 2010) are the private returns to HE, and gradual transformations in beliefs about HE, its role in society, who benefits, and so who should pay. All major HE student funding reforms in Britain since 1990 have sought to restructure this balance of private and public contributions. A second driver of student funding reform, also ideological, is the quest to create a HE quasimarket. User choice and provider competition were central to Labour's modernisation agenda and their public services reforms, including HE, placed the consumer centre-stage (Vindler and Clarke, 2005;Clarke et al., 2007). These policy technologies (Ball, 2008) steered Labour's HE policies, were crucial to their 2004 Higher Education Act, and are central to the Coalition's reforms. The Labour government's 2004 Higher Education Act, which came into force in 2006, launched variable tuition fees for full-time undergraduate courses capped by government at £3,000. 3 All full-time students were eligible for income-contingent student loans to cover all their tu...