St Hugh’s College, Oxford, has been left facing a legal suit after allegedly discriminating against its less wealthy postgraduate students. Rather than basing its admission decisions solely on academic merit, St Hugh’s - among other Oxford colleges - is demanding that its offer-holders prove that they are able to pay the £21,000 the university claims is necessary for tuition and living costs, and refusing offers to those who cannot meet this threshold.

The claim was issued by Damien Shannon, 26, who has been barred from taking up his place to study for an MSc in economic and social history due to a lack of funds. Despite securing a £10,000 loan from the Co-operative Bank which would cover his tuition, college fees and some living costs, St Hugh’s has refused him entry, finding him drastically short of their £21,082 threshold. Although he was warned that these financial stipulations were a condition of his place, Shannon argues that: “For me, the effect of the financial guarantee for living costs is to render the right of access to education at the university illusory, and thus to deny the very essence of that right.” He has submitted legal papers claiming a breach of his human rights, despite the possibility that he may be liable for full costs if he loses the case.

With the first hearing due to take place in February, St Hugh’s refutes the claim but does not deny barring Shannon for financial reasons. The college argues that this testing is necessary to ensure that its students are able to complete the highly oversubscribed courses, and can do so without the burden of financial anxiety. The University of Oxford does not recognise anticipated earnings from students who plan to carry out paid work during their studies.

Backing Shannon is Hazel Blears, former Labour cabinet minister, and MP of Shannon’s constituency, Salford. Her campaign has already won her a parliamentary debate to be held about his case on Wednesday. Speaking to the Observer, she deemed it ‘ludicrous’ that Oxford University should set so high a financial estimate and maintains that students can - and do - live on far less through stringent budgeting and part-time jobs. “Even in an expensive city like Oxford, a student can live on far less than £13,000 a year with careful budgeting. In any case, living costs should be a student’s personal responsibility and many get part-time jobs to help make ends meet.”

A university spokesman stated in response that "Oxford has been vocal about its wish that postgraduate admissions should be truly needs-blind, and works very hard to make progress towards this aim, both by fundraising for postgraduate support and lobbying the UK government to put in place measures to ensure that postgraduates, like undergraduates, have access to loans that ensure postgraduate study is a possibility for all."

These financial pressures are not unfamiliar to today’s postgraduate students, with study fees now averaging out to £8000, a marked rise from last year. In order to take an MPhil in Economics at the University of Cambridge, prospective applicants must be prepared to spend £21,000 in tuition fees alone, while Management and Development Studies also far surpasses the £10,000 mark. According to the Higher Education Statistics Agency, there were 8% fewer students taking up postgraduate courses in 2011-12 than in 2010-11 - a figure that amounts to 16,000 people.

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Wanted: postgraduates with liquid capital

Phelim Brady - News Analysis Editor

With this new controversy, added to last week's news that overseas postgraduate applications have dropped for the first time in 16 years, and growing fears about the impact of cuts to master's programmes, things are not looking bright for postgraduates in Britain.

Oxford may wish to be "truly needs-blind”, but the trouble is that at Oxford, Cambridge and many other universities, a candidate’s financial standing does decide whether they are allowed to take up their place. While such information might not affect the decision to make an offer, would-be postgrads may be stopped from starting courses if it transpires their financial circumstances are less than satisfactory.

In its literature on postgraduate admissions, the University of Cambridge makes clear that it is only on the condition of “immediate access to a large amount of liquid capital” (original emphasis) that offer holders will be allowed to take up their places. All those with a place must complete a financial undertaking form, which warns prospective students they must have the necessary financial arrangements in place before beginning their courses, instead of relying on future income from employment or funds from loans. Cambridge is quick to remind applicants that in most circumstances no part-time work may be undertaken alongside studying, making applications even more difficult for those without savings.

Of course, the universities insist upon this requirement to save students from falling into financial difficulty part way through courses and derailing their studies, and also to limit their own liability in such circumstances. They point out that there exist a range of scholarships which provide significant funding in many subjects.

One major source of such funding is in decline, however, with the recent news that Britain’s government-funded research councils have withdrawn from supporting almost all taught master’s courses. Students on these courses have recently seen fees increased by an average of 11 per cent. Commenting on this, Dr Wendy Piatt, the Russell Group’s director general, told the Guardian she was “concerned that the lack of financial support at this level may be presenting another hurdle for students – especially those from disadvantaged backgrounds – to overcome."

Richard Johnson, a former Cambridge undergraduate now completing an MPhil at Nuffield College, Oxford, said that "the postgraduate funding situation in England is, frankly, a sham" and criticised Oxbridge's insistence that students refrain from employment.

"In spite of students making their very best efforts to meet the astronomically high financial guarantees, some will not be able to show proof that they have £21,000 (or sometimes much more) sitting in their bank accounts. What needs to happen (urgently) is for the government to create a postgraduate student loan system along the lines of the undergraduate loan system."

Despite efforts by the NUS and others to push for a comprehensive, national solution, the state of postgraduate funding looks to remain uncertain for years to come, at least for those without “liquid capital” in their lives.