Students Face "Never-Ending Cost-of-Living Crisis" as Maintenance Loans Fall Short

Strategic Insights -

The cost of living is taking a significant toll on university students, with many struggling to make ends meet due to maintenance loans that consistently fall short of costs. According to a recent survey by Save The Student, students are spending an average of £1,142 per month, rising to £1,269 in London, leaving them with an average shortfall of £500 per month. This has been particularly evident in the decline of parent contributions, which have dropped to £146 per month, the lowest since 2021.

Key Takeaways:

  • Students are facing a significant cost-of-living crisis, with average monthly spending rising to £1,142, and an average shortfall of £500 per month in maintenance loans.
  • Parent contributions have decreased to £146 per month, the lowest since 2021, particularly affecting middle-income families.
  • Average reported student spending has risen by 3.4% from last year, but is still lower than the peaks seen in 2022 and 2023.
  • The Student Loans Company confirmed the average maintenance loan received in England for 2024/25 was £7,678, translating to around £640 per month, leaving students with a £502 monthly shortfall.
  • Nearly three in five students (59%) reported skipping meals at least some of the time to save money, and more than two in five considered dropping out of university due to financial concerns.
  • More than three-quarters of students worry about making ends meet, though this is lower than the 80% who were concerned in the past three years.

Statistics:

  • Average monthly student spending in the UK: £1,142
  • Average monthly student spending in London: £1,269
  • Average shortfall in maintenance loans: £500 per month
  • Decrease in parent contributions since 2021: £25 per month (£171 to £146)
  • Increase in student spending since last year: 3.4%
  • Average maintenance loan received in England for 2024/25: £7,678 (£640 per month)
  • Students skipping meals to save money: 59%
  • Students considering dropping out of university due to financial concerns: 42%
  • Students worried about making ends meet: 77%

Sources:

  • Save The Student's annual survey
  • National Student Money Survey (2013-present)
  • Tom Allingham, Save The Student's student money expert
  • Vivienne Stern, Universities UK