FE Student Support Discretionary Funding 2026 to 2027 Date: 17/06/2026
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 1 FE Student Support Discretionary Funding AY 2026 to 2027 Issue Date: 17 June 2026 Summary: The conditions of use by colleges of SAAS Further Education Student Support Discretionary funding for Academic Year 2026- 27. FAO: Principals and Finance Directors of Scotland’s colleges Further Contact: SAAS Policy (SAAS_Policy@gov.scot) Information:
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 2 Table of Contents FE Student Support Discretionary Funding AY 2026 to 2027 ..................................... 1 Table of Contents ....................................................................................................... 2 FE Student Support Discretionary Funding AY 2026 to 2027 ..................................... 4 Introduction / ........................................................................................................... 4 Purpose of FEDF /................................................................................................... 4 Legislative context / ................................................................................................. 4 Student eligibility for FEDF / .................................................................................... 5 Course type and level .......................................................................................... 5 Residency and Determination and Grant Letters ................................................. 5 Asylum seekers .................................................................................................... 6 Students receiving support from other sources .................................................... 7 Priority groups ...................................................................................................... 7 College Management of FEDF / .............................................................................. 8 What can FEDF be used for? ............................................................................... 8 How much can be allocated to each student? ...................................................... 8 Assessment of need............................................................................................. 8 Can FEDF be used to purchase items and equipment?....................................... 9 Supplementing FEDF ........................................................................................... 9 Carry forward and recovery of unspent funds ...................................................... 9 Using FEDF for Bursary ..................................................................................... 10 Reporting mechanisms and data collections ...................................................... 10 Communication with students ............................................................................ 11 Further information for college student support staff .......................................... 11 Conditions of funding /........................................................................................... 11 Further information / .............................................................................................. 11 Annex A .................................................................................................................... 12 Summary of updates to FE Discretionary Funds Guidance for AY 2026-27 /........ 12
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 3 Annex B .................................................................................................................... 13 Guiding Principles for use of Discretionary Funds / ............................................... 13 Principles for institutions .................................................................................... 13 Guiding principles for use of Discretionary funds ............................................... 13 Further information ................................................................................................... 15
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 4 FE Student Support Discretionary Funding AY 2026 to 2027 Introduction / 1. This document sets out the conditions for use by colleges of Further Education (FE) Discretionary Funding allocated by Student Awards Agency Scotland (SAAS) for Academic Year (AY) 2026-27. 2. FE Discretionary Funding (FEDF) is cash-limited and discretionary. Students who are eligible for support from these funds are not automatically entitled to this support. Purpose of FEDF / 3. FEDF is primarily for emergency use and instances of financial hardship. Funding is intended to: • Provide financial help to students whose access to or continuation in FE may be inhibited by financial considerations. OR • Where students, for whatever reasons, face financial difficulties. 4. FEDF must be used by colleges for student support purposes, in accordance with this guidance. Colleges should also comply with any changes made to this guidance through conditions of the payment of the fund which may be set out in supplementary guidance issued by SAAS. Legislative context / 5. SAAS, issues Further Education Student Support funds, in accordance with the Education (Access Funds) (Scotland) Regulations 1990 (“the Access Funds Regulations”). Under regulation 2 of the Access Funds Regulations, Ministers can provide grants to colleges or universities, for the purpose of
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 5 providing financial assistance for students receiving education provided by those colleges or universities, known as “discretionary funds”. 6. The Education (Discretionary Funds) (Scotland) Direction 2025 and the Education (Discretionary Funds) (Scotland) Determination 2025 were issued by Scottish Ministers in 2025 for courses undertaken in AY 2025-26. Scottish Ministers will issue grant letters for AY 2026-27 in summer 2026, which will set out the conditions of grant and, if necessary, update the Determination. Once published, the Determinations can be accessed on the Further Education publications section of the SIS website. Student eligibility for FEDF / Course type and level 7. FEDF is for students undertaking SFC-Fundable non-advanced/FE courses, who have reached their statutory school leaving age. For an explanation of ‘SFC Fundable’ please refer to SFC’s Credit Guidance. 8. Under no circumstances can a college use FEDF for: • Students on advanced/Higher Education (HE) courses. • Students who are below their statutory school leaving date, as defined in the Education (Scotland) Act 1980. • Students who are beyond their statutory school leaving date but still studying at school. (This includes students studying at school under the school/college partnership). Residency and Determination and Grant Letters 9. The Education (Discretionary Funds) (Scotland) Determination 2025 was issued by Scottish Ministers and became effective on 17 September 2025. It outlines the eligibility criteria for students who can receive a grant from the Further Education (FE) Discretionary Fund. 10. To access the FE Discretionary Fund, a student must be eligible under the current Determination. The Determination currently requires them to be an
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 6 eligible person under in Schedule 1 of that Determination; or be a person eligible for student support, under Schedule 1 of the Student Support (Scotland) 2022 Regulations; or be eligible to receive student support under equivalent provisions of legislation made under sections 22, 42(6) and 43(1) of the Teaching and Higher Education Act 1998; or articles 3 and 8(4) of the Education (Student Support) (Northern Ireland) Order 1998. 11. Scottish Ministers will issue the relevant revised Determinations and grant letters for AY 2026-27 in summer 2026. Once published, the Determinations can be accessed on the Further Education publications section of the Student Information Scotland (SIS) website. Asylum seekers 12. Colleges can provide emergency financial support from FEDF for students in the categories set out below: • Asylum-seeking students who are on full-time or part-time ESOL courses or other part-time non-advanced courses. • A young asylum seeker, or the child of an asylum seeker, who is studying a full-time or part-time FE course, and is living in Scotland on the relevant date. To be classed as a young asylum seeker, or the child of an asylum seeker, an application for asylum should be submitted to the Home Office before they are 18 years old. 13. This support can only cover the travel and study costs necessary for the student to get to college and take part in their course of study. The support should not usually constitute maintenance or living costs. 14. Colleges should provide this travel and study support in the form of physical items (e.g., travel pass or study materials or equipment) where possible, rather than in monetary terms (cash). If the college provides this support in monetary terms, the student must be given both a clear explanation of the purpose of the support given and a written copy of the conditions of support. 15. Where the asylum-seeking student has no alternative form of childcare, assistance may include payment to cover childcare costs whilst they are studying.
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 7 Students receiving support from other sources 16. Students are not entitled to seek support from FEDF from more than one institution at a time. For this reason, colleges should ensure that a declaration is signed by the student when applying for FEDF to confirm that they have not applied for, nor are they in receipt of, FEDF from another institution. 17. Students who are in receipt of other funds - public or private - are still eligible to receive FEDF. Colleges should advise students in receipt of benefits to check how an FEDF award will affect their individual circumstances. 18. Colleges can access general advice and guidance on social security benefits on the UK Government's website and on the Social Security Scotland (SSS) website. In addition, the Child Poverty Action Group (CPAG) Scotland’s Handbook, Benefits for Students in Scotland for 2025-26, is available online. A new edition of the Handbook is published by CPAG Scotland annually in autumn. 19. Further information related to benefits for students can also be found on the SIS website. Priority groups 20. When making FEDF awards, colleges are asked to consider the financial hardship of the student applicants, and give proper consideration to vulnerable/disadvantaged groups such as (but not limited to) estranged students, students who are carers, care-experienced students, students with dependent children and part-time students. 21. Corporate Parenting Duties as defined in the Children and Young People (Scotland) Act 2014 ask that colleges “uphold the rights and safeguard the wellbeing of looked after children, young people and care leavers” (care experienced). When making FEDF awards, colleges are asked to consider these legal duties and the financial hardship faced by this group.
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 8 College Management of FEDF / What can FEDF be used for? 22. FEDF is intended to be allocated to students, either as a non-repayable monetary grant or an in-kind support through the purchase of specific items. A college cannot use FEDF for: • Administration costs (including the costs of any recovery of overpayments). • Staff salaries, including counselling costs. • Capital purposes. • Communal facilities, adaptations to buildings. • Top-up fees such as tuition and/or exam fees. • To compensate for the lack of parental contributions. How much can be allocated to each student? 23. The overall payments to an individual student must not exceed £5,000 in a single AY. Within the overall amount of £5,000, colleges are best placed to decide how much should be allocated to the individual student based on an analysis of their need. The needs assessment should be based on evidence showing the student’s net financial position. There is no maximum number of times that a student can receive assistance from FEDF throughout the AY. 24. Should a college believe there are exceptional circumstances that merit awarding a sum above this amount, it should contact the SAAS Policy team in advance. Assessment of need 25. Colleges should continue to carry out a needs assessment, which should be based on evidence showing the student’s net financial position. This evidence can be taken from information which the student has already supplied. For example, this may include details of household income submitted as part of the application for bursary. If possible, students should not be asked to submit duplicate information.
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 9 26. Where additional information is required from the student, colleges should take a balanced and proportionate approach when asking for supporting evidence. Colleges should seek the minimum information required, usually the student’s latest bank statement(s). Additional supporting evidence may be required where the bank statement does not provide the information required. Can FEDF be used to purchase items and equipment? 27. FEDF may be used to purchase items for a student, including course-related materials and equipment. There is no threshold on the amount that colleges can spend on these items. In most cases, the cost of items bought from this funding will be relatively small. 28. The college may use its discretion to pass ownership to the students, where appropriate. However, colleges are encouraged to deliver best value when purchasing and are encouraged to recycle items where possible. 29. If a student does not complete the course and/or attain the planned qualification, the college may insist that course materials and other items bought using this funding should remain the property of the college. Supplementing FEDF 30. A college can choose to add to its FEDF from its own resources as it sees fit. Carry forward and recovery of unspent funds 31. Colleges cannot carry-forward any unused FEDF between AYs. 32. The available funds are taken to be the allocation for an AY, as announced in the relevant annual final Further Education Student Support funding allocations. Where appropriate, the available funds also take account of funds received or relinquished as part of the annual In Year Redistribution (IYR) of student support funds exercise. To be clear, unspent funds are the available funds less the audited spend. 33. Unspent funds for AY 2026-27 will be recovered during AY 2027-28.
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 10 Using FEDF for Bursary 34. Colleges may use their FEDF to meet shortfalls in their bursary allocations. Any FEDF used this way must meet the conditions of the bursary policy in full. Colleges cannot use FEDF to meet bursary needs of students who do not meet the eligibility criteria to receive an FE bursary. Reporting mechanisms and data collections 35. The Chief Executive Officer (CEO) of each college must ensure that all accounts and records are adequate and there are systems in place to minimise incorrect payments. 36. Colleges are required to complete the student support elements of the FES return to confirm their final spend on student support. Colleges should continue to complete FES data returns through the existing FES system maintained by SFC. The AY 2026-27 FES data return is due on 1 October 2027. Guidance on completing the FES data returns can be found on the SFC website. 37. Auditors are required to sign off the FES online student support funding report. Colleges should ensure that their auditors receive a copy of: • The student support audit guidance. • This guidance. • Determinations and grant letters for AY 2026-27 • The National Guidance for FE Student Support Bursaries. • Their outcome agreement for the relevant year. 38. Colleges may wish to provide their auditors with SAAS contact details and the FE publications section of the SIS website. 39. Colleges should refer to the Accounts Direction for Scotland’s Colleges when presenting information on the student support funds in their annual accounts. The Accounts Direction for Scotland’s Colleges 2024-25 can be accessed on the SFC website. The updated Accounts Direction guidance will be published on the SFC website.
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 11 Communication with students 40. This guidance has been written for bursary and student support officers within colleges. It is the responsibility of the college to ensure that students are familiar with the availability of FEDF and the procedures they must follow to access funding. We recommend that for communication with their students on student support, colleges publish their own college guidance. This will ensure that students receive information that is relevant to their own circumstances and local community. Further information for college student support staff 41. More information for student support practitioners who are working in colleges can be found on the FE publications section of the SIS website. Conditions of funding / 42. Grant letters will be issued by Scottish Ministers directly to colleges and will replicate former conditions of grant previously issued by SFC in their Final Allocations publication. Further information / 43. Please contact the SAAS Policy team, email: SAAS_Policy@gov.scot.
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 12 Annex A Summary of updates to FE Discretionary Funds Guidance for AY 2026-27 / Discretionary Funds Subject Paragraph(s) Summary Legislative context - • The guidance has been updated to reflect the legislative context for SAAS administering Further Education Student Support funds. Residency - • This section has been renamed Residency and Determination and Grant Letters and reflects the legislative context for SAAS administering Further Education Student Support.
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 13 Annex B Guiding Principles for use of Discretionary Funds / Principles for institutions 1. Discretionary Funds are an additional source of non-repayable financial support available to students who may be experiencing financial difficulties during their course. In HE, Discretionary Funds are allocated by Scottish Ministers via SAAS and are administered by individual institutions. From AY 2026-27, for students in FE SAAS will issue separate guidance on the disbursement of Discretionary and Childcare Funds. There is also separate guidance for students which includes details on how to apply. 2. Below is a set of guiding principles that set a baseline level of consistency in how student applications for discretionary funding are to be processed and awarded by colleges and universities in Scotland. This has been endorsed by Colleges Scotland, the National Association of Student Money Advisers (NASMA), Universities Scotland, the Further Education Student Support Advisory Group (FESSAG) and the National Union of Students (NUS) Scotland with the aim of ensuring as positive an experience for students as possible, recognising that students are facing difficult circumstances. 3. These principles should be read in conjunction with the other FE Student Support guidance provided by SAAS. Guiding principles for use of Discretionary funds 4. Colleges and universities assess student applications for Discretionary funding with the aim of positively allocating Discretionary funding based on evidence of need/financial difficulty, within the financial constraints of the budget provided by Scottish Government. 5. Colleges and universities recognise that any student may face financial hardship however look to prioritise support for students who are listed as a priority group within the complementary guidance (as set out above).
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 14 6. Colleges and universities have a duty of care to their students to protect student wellbeing and to not promote short-term borrowing solutions or use of credit cards as an alternative to Discretionary fund support. 7. Colleges and universities take a proportionate approach to the evidence they require of students to demonstrate financial hardship. They aim to make the process as simple and straight forward as possible. 8. Colleges and universities treat every student seeking support with respect and confidentiality, fully aware that people may feel sensitive and uncomfortable about sharing highly personal information about themselves and their finances. 9. Colleges and universities are able to support students in managing their money where appropriate, including but not limited to: paying a third party service (such as childcare provider) on their behalf or providing vouchers in place of cash. This is done in consultation with the student. 10. Colleges and universities aim to ensure that, where possible, discretionary funds remain available to students throughout the AY and where necessary for students who are ineligible for Universal Credit into the summer break, providing sufficient funds are available. 11. Colleges encourage students on FE courses to make use of the UK and Scottish Government benefits available to them over the summer. Where appropriate and where needed, colleges may support a student with a “transition payment” to help bridge the gap between a FE course finishing and a student’s receipt of first benefit payment. 12. Colleges and universities promote the availability of Discretionary funds amongst their students with clear and regular communication throughout the AY including the summer period providing funds are remaining. Every effort is made to communicate widely, and simply, using plain English, removing all possible barriers to students accessing this type of support. 13. In addition to Discretionary funds, colleges and universities offer other forms of support to students who are worried about money. This might include practical money management advice and/or mental health support such as counselling. This is promoted to students by individual institutions.
SAAS Student Awards Agency Scotlandwww.saas.gov.uk 15 Further information This publication is also available at: https://www.studentinformation.gov.scot/public ations Any enquiries regarding this publication should be sent to us at: Student Awards Agency Scotland Saughton House Broomhouse Drive Edinburgh EH11 3UT or at SAAS_Policy@gov.scot Published 17 June 2026
Student Awards Agency Scotland Saughton House Broomhouse Drive Edinburgh EH11 3UT Tel: 0300 555 0505 www.saas.gov.uk Facebook YouTube Instagram TikTok