University students are struggling because their maintenance loans leave them, on average, £502 short every month and so they struggle to pay their essential living expenses – including rent.
That's according to the latest National Student Money Survey, carried out by Save the Student.
It polled 1,151 students between June and August 2025 and found there’s a growing financial strain on students in higher education.
Living costs for the average student have risen to £1,142 per month, that’s up 3.4% from 2024.
Rent remains the largest expense, averaging £529 monthly, though this is slightly down from £540 last year.
Increase student Maintenance Loans
Save the Student's student money expert, Tom Allingham, said: "This year's survey results confirm what we've long feared: that failing to tie Maintenance Loans to rising costs would lead to a never-ending cost of living crisis for students.
"Although inflation has drastically fallen since its peak in 2022, the same cannot be said for the level of financial hardship uncovered by our reports.
"At £502 per month, the average shortfall between loans and living costs is close to its highest ever level, and more than three in five respondents are still skipping meals to save money."
He added: "At the same time, the average amount students receive from their parents is declining, with our findings suggesting those from middle-income households have been hardest hit."
Students struggle financially
The survey also found that food costs add £146 each month, but with many students skipping meals, this amount often fails to ensure a decent quality of life.
Utility bills and transport further burden student budgets, costing £69 and £67 per month, respectively.
The financial pressure is taking a toll, the organisation says.
With 76% of students reporting a constant worry about making ends meet, 83% of those say these concerns harm their well-being.
More than half (52%) note a decline in their diet, and 61% admit to skipping meals to cut costs.
Growing mental health issues
Around 10% of students relied on food banks in the past academic year, up from 9% in 2024.
Also, one-in-three students say their academic performance has suffered, and 50% report negative effects on their mental health.
To help bridge the financial gap, 52% of students rely on parental support, receiving an average of £146 monthly.
However, this contribution has dropped by £25 since last year, as household budgets tighten across the UK.
Middle-income families, in particular, are struggling to provide the support expected by the government, leaving their children ineligible for many bursaries and unable to access the maximum loan amount.
Raise the Maintenance Loan threshold
Mr Allingham said: "One simple solution is to raise the lower household income threshold – the point at which a student receives the maximum loan – to reflect the growth in average wages since it was set in 2007.
"This would drastically increase the amount most students receive, and in turn reduce the contributions expected from their families."
He adds: "But first and foremost, Maintenance Loans must increase to catch up with inflation and reverse years of real-terms cuts."
More students are working
To help pay the bills, students are increasingly working with 58% now employed in part-time jobs, while 30% run their own businesses or have 'side hustles'.
Savings provide a buffer for 51% of students, and 34% use interest-free overdrafts on student accounts to manage costs.
Regionally, London remains the priciest place to study, with monthly living costs averaging £1,269, £129 above the national figure.
The South West follows closely at £1,193, while Northern Ireland is the most affordable, with students spending £977 per month on essentials.
Student landlords face higher bills
Simon Thompson, the managing director of Accommodation for Students, said: "For student landlords, these findings won't come as a surprise that students are struggling financially.
"Though news that maintenance loans are lagging £502 behind monthly living costs and with parental support dwindling, students are under unprecedented financial strain.”
He added: "That may also mean, potentially, more students will struggle to pay rent."
