Students struggle to support themselves as university rent costs rise

Students are suffering high levels of financial stress as they struggle to support themselves during term time following a real terms decline in the value of the maintenance loan and the rising cost of rent. A quarter of students find managing their money stressful, according to a survey of 3,604 students commissioned by NatWest. Although most students receive a means-tested maintenance loan from the government to cover their living costs, nearly half of respondents (43%) said they had run out of money by the end of the semester, while one in three (32%) used their overdraft to cover their rent and household bills. Over two-thirds of students rely on the loan – averaging at £509 per month – to finance themselves. However the value of that loan has fallen since it was introduced in 2012 following freezes and below inflation increases. Meanwhile, the NatWest survey found that rent prices for students have increased by £20 per month since 2018, with the biggest increases – 5% and 15% – registered in London and student towns in the south east.