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Balancing Innovation and Basic Needs: Higher Education’s Dual Challenge in 2025

Written by: Parcel Pending

7 Min Read

Published: June 20, 2025

Universities and colleges are abuzz with AI-powered tutoring systems, predictive analytics for student success, and automated administrative processes that promise to revolutionise the educational experience. Yet, alongside these remarkable advances, students continue to face fundamental challenges – like food and mental health insecurity – that technology alone cannot solve.

This juxtaposition of cutting-edge technological progress against persistent basic needs insecurity highlights the multifaceted nature of modern campus life in 2025. This blog will cover the trends to watch this year as well as how you can adapt to better support your students, staff, and faculty.

The Good and the Bad About Artificial Intelligence

Artificial Intelligence (AI) is becoming somewhat of a double-edged sword in higher education. On the one hand, it helps students brainstorm projects, determine roadmaps, and meet employers’ demands for AI fluency. On the other hand, students are also losing the art of critical thinking, skipping writing exercises that foster strong communication skills, and delegating homework assignments that help them develop core competency in maths and science. Jenna Lyle, a New York City Department of Education spokesperson, explains: “While the tool may be able to provide quick and easy answers to questions, it does not build critical-thinking and problem-solving skills, which are essential for academic and lifelong success.”¹

Despite educator concerns, 92% of UK students reported using AI tools in their studies, with 88% using them for assessments and 18% including AI-generated text directly in their submitted work.² AI’s usage is so prevalent that it’s become a bit of a cat-and-mouse game between students and lecturers. With the emergence of each new AI tool that allows students to do things like write essays (with citations) in minutes, lecturers are just as quickly adopting various AI-detecting software, like Turnitin and Pangram Labs, to enforce proper completion of assignments and exams.

AI also presents other challenges. It’s creating a world of disparity between the haves and the have-nots. The gap between certain groups could grow if access to paid tools translates into uneven access to online tools and support materials. Furthermore, data privacy and security pose significant vulnerabilities in the implementation of AI across education and beyond. AI systems collect and analyse massive volumes of sensitive personal and copyrighted information, creating substantial risks for data breaches, unauthorised access, and potential misuse. Educational institutions face mounting pressure to safeguard student records against increasingly sophisticated threats while navigating complex regulatory frameworks that often lag behind technological advancement.

The Quest for Maximum Value

Higher education institutions and students are weighing the concept of ROI on education. A startling 48% of UK graduates regret obtaining their degree.³ Further, nearly half (44%) of university graduates end up underemployed after completing their education, working in jobs that typically don’t require a college degree. This means they don’t earn the higher wages normally associated with college-level positions, according to research by Barclays Apprenticeships.⁴

It should come as no surprise, then, that universities themselves are looking at jobs, student debt levels, expected earnings, and other indicators that resonate more deeply with today’s students. Institutions recognise that they must maximise efficiency and optimise resource allocation this year to better support current and future students.

Students Value Mental Health & Well-Being

Mental health continues to be a significant issue across higher education. According to a 2025 report by Transforming Access and Student Outcomes in Higher Education (TASO), the proportion of UK undergraduate students reporting mental health difficulties has tripled since 2018, affecting approximately 300,000 students.⁵ Unfortunately, one in four students also considered dropping out of university between 2021 and 2024, with mental health difficulties cited as the primary reason.⁶ As Aneesh Sohoni, CEO of One Million Degrees, summarises: “At a time when a growing number of students are struggling with basic needs such as food, financial security, and housing, the modern college campus is more than just a place where students take classes. It’s evolved into a hub for social services and community support.”⁷

Financial pressure remains one of the most significant contributors to poor student mental health. According to Cibyl’s 2024 Student Mental Health Study, more than seven in ten respondents (71%) said that financial concerns were either a partial or primary cause of their mental health difficulties.⁸ Students cited the rising cost of living, including housing and food insecurity, as major stressors—factors that often force them to take on part-time work, reduce social engagement, or cut back on essentials. These behaviours, while coping mechanisms, can exacerbate feelings of anxiety, isolation, and academic strain.

The main issue, however, is that while students are concerned about their mental well-being, only 12% believe that their university handles mental health well.⁹ The key to effective student wellbeing services lies in preserving student dignity and respect. Students want high-quality services without feeling stigmatised when seeking assistance. Institutions are increasingly turning to tools like smart lockers, which enable the discreet dispensing of medication, for example, without drawing attention to the fact that students are seeking help.

Food Insecurity is A Pressing and Growing Problem on Campus

Rising tuition, growing inflation, a low minimum wage, and higher housing costs are contributing to the food insecurity plaguing university students, with 28% of UK university students affected, significantly higher than the national average of 8-10%.¹⁰ Students from marginalised backgrounds, international students, care leavers and those in part-time work are particularly vulnerable. These statistics highlight that, although not universal, a substantial portion of students face uncertainty about their next meal, as well as emphasise the critical need for immediate support systems.

The Emergence of Food Pantries as a Solution

Universities across the country are beginning to tackle this challenge with more accessible and inclusive food support schemes. According to a report by HEPI, more than a quarter of universities (27%) now operate a food bank on campus – a figure that rises to one third (33%) within Russell Group universities – and one in ten (11%) also give out food vouchers.¹¹ More students are using these services, too, with 14% saying they used a food bank in the past year and many more regularly skipping meals to save money.¹²

At the University of Kent, rebranding the institution’s on-campus food bank as the ‘Campus Pantry’ helped reduce stigma and saw usage quadruple in just one year. Students can access essential items, from dry goods to toiletries, in a welcoming, no-questions-asked environment.¹³ Similar student-led initiatives are emerging across the country, offering stigma-free, practical support that is easy to access and tailored to student needs. At Birkbeck, University of London, the Birkbeck Students’ Union Food Pantry has distributed over 10,000 free meals to students since its launch in December 2023.¹⁴ Students’ Union Chair William Sarended added: “This project was incredibly important to me, as it became clear that many students needed support, especially over the holiday period. For some, navigating external food banks can be daunting, so we wanted to create something accessible, free, and confidential right here on campus.”¹⁵

Supporting Student Wellness with Smart Lockers

Whether used to distribute mail, food, medication, or other wellness-related supplies, smart lockers can help your institution serve the campus population without requiring additional staff or service hours. Parcel Pending by Quadient lockers can manage internal mail and packages as well as serve as distribution centres (a Campus Hub, if you will) for other departments around campus – facilitating the exchange of library items, IDs and enrolment materials, parking passes, equipment rentals, and much more. Access to lockers enables students to retrieve items at their convenience 24/7, eliminating long lines and offering greater flexibility outside traditional business hours – better supporting members of the campus community in all walks of life.

Innovations Must Work Smarter, Not Harder, for 2025 and Beyond

Higher education in 2025 faces a complex landscape where artificial intelligence meets persistent challenges faced by students, including food insecurity and mental health concerns. As campuses continue to add and support hubs for social services and community support, institutions are implementing solutions like smart lockers to provide services while maximising efficiency and preserving student dignity.

Ready to lock in a solution and deliver more for your students, staff, and faculty in 2025? Speak to a Parcel Pending representative today!