Inflation has hit students hard: Here’s what you need to know about fees, loans, living costs… and budgeting

Tuition, housing costs and other necessities such as textbooks mean that going to university can be an expensive affair.

Fees are now up to £9,250 a year and living costs can be as much as £30,000 over three years.

Now students face an even bigger battle as inflation remains high, making it harder to live on a budget.

We look at whether the government loan is enough to cover the costs, how students can budget and what parents can do to help.

Are students hardest hit by inflation?

July’s inflation figures show that while inflation has eased to 6.8%, it remains well above the Bank of England’s target of 2%.

The price of basic necessities such as food and housing is still high for the majority of Britons, and while wages may rise, the cost of living is still high.

For students, it’s even higher, as the price of college supplies remains astronomical — and while some employees may get a raise, students can’t simply negotiate an increase in their student loan.

The most recent data from ONS shows that the price of food and non-alcoholic drinks rose again last month, albeit by 0.1 percent, compared to a 2.3 percent increase from the same period last year.

This means that the price of groceries is still 14.9 percent higher than a year ago.

The good news for students is that the price of essentials like milk, bread and eggs is starting to drop. The price of whole milk fell 5.8 percent over the month, while bread, crumpets, pizza and breakfast cereals were the biggest negative contributors in July.

The price of alcohol – also ‘essential’ for many students – remains largely the same as last year. The average pint of lager in a pub now costs £4.47, up from 47p or 11.7 per cent in a year, according to figures from the ONS. A pint of beer now costs an average of £3.81, an increase of 31 pence, or 8.8 per cent.

The price of wine and beer has risen slightly since last year, but this is offset by a small drop in the price of spirits.

However, according to the ONS, books and stationery have largely remained at the same level as last year.

A survey by the Office for Students earlier this year found that 43 percent of college students have cut back on their spending on food. More than half spent less on takeaways and nights out.

Is the maintenance loan sufficient to cover the costs?

The maintenance loan is the main source of income for the vast majority of students. The average loan is around £5,820 a year, according to Save the Student.

How much a student gets depends on things like household income, where they will be living during their studies and where in the UK they normally live.

The minimum student loan from England is £3,698, which is paid to students with a household income of £58,291 or more who will be living at home during their time at university.

Students living away from home living in London and with an annual family income of £25,000 or less will receive the maximum of £13,022. Outside London, those with the same household income would get £9,978.

However, maintenance loans in England have not kept pace with inflation. Save the Student spokesman Tom Allingham said Northern Ireland, Scotland and Wales have all done their best to increase theirs.

‘In England, the loan will only increase by 2.8 percent this year. This follows an increase of 2.3 percent last year. The bottom line is that students in England will now be £1,500 worse off in a single year, in real terms, compared to before the cost-of-living crisis,” he said.

“That’s £1,500 worse off than a time when the loan wasn’t enough.”

An ONS survey conducted in February found that of the 68 percent of students who received a student loan, 58 percent said it didn’t cover their entire living expenses.

For most students, the maintenance loan will barely cover housing costs, let alone essentials like food. The average monthly rent for students is £535, rising to £663 in London, while energy costs around £85 a month. For a year this totals £7,440, almost double the minimum maintenance loan on offer.

“The way the maintenance loan is calculated is if you don’t get the maximum amount, whatever the gap is between the amount you get and the maximum loan being offered, that’s what the government expects your parents to do,” says Allingham. .

“The amount has not decreased, it has actually increased. So parents are expected to contribute slightly more each year compared to the previous year.

‘Some students are not allowed or unable to get a part-time job because they don’t have the time, and even those who have a part-time job still have a hard time making ends meet.’

Difficult: for many students, the maintenance loan does not cover all their costs, which puts them in financial difficulties

The end of mom and dad’s couch?

Since the current student finance system uses a student’s household income to determine the amount they can receive in loans, this means that parents are often expected to set aside extra money.

For example, if you are from England and live outside London, you can get a maintenance loan of £9,978 if your household income is £25,000 or less.

However, if your parental income is £62,343 or more, the government will only offer you a maintenance loan of £4,651. They expect parents to cough up the remaining £5,327 to meet the maximum loan amount.

It means that the average student depends on parental support. A survey by Save the Student found that the average student receives £149.80 per month from their parents.

“However, parents are not immune to the cost-of-living crisis either,” says Allingham. They’re just as vulnerable as anyone else. You have a situation in which parents are less or perhaps least able to support their children at university, precisely when that support is needed.’

What help can university students get?

There are some ways to help lower college costs.

The choice of university itself can affect the costs of housing, for example, although this is usually not a parental decision.

London, for example, has the most expensive student rent in the UK, costing an average of £663 per month, over £100 more than the next most expensive region, Yorkshire.

Northern Ireland has significantly cheaper student rents, costing £319 on average, according to Save the Student.

Students renting through private landlords tend to pay less per month compared to those in private or university-run halls, with the average rent being around £523 per month compared to nearly £600.

Elsewhere, teaching your kids how to budget and find the nearest discount store can help.

Finding a good bank account is helpful because they often offer generous benefits, such as an interest-free overdraft.

However, students should be aware that these overdrafts have a limit – often £1,000 in the first year – and charges may apply if they exceed that.

Seven major banks are now offering students a £100 incentive to join, and Santander continues to offer a free four-year rail card.

> We have collected the best student bank accounts here

Allingham suggests that parents and students also look at the accounts with the largest, interest-free overdraft.

In general, it’s best to stay out of your overdraft and even as a student you ideally wouldn’t be in it, (but) it’s the safest and most easily accessible form of cash while you’re in college.

“I’d say forget about the present and take a look at the bill that might give you an extra amount in an interest-free overdraft. This will be a buffer, a safety net, that you may need when you come to the end of your term and your money is running low.”

Finally, it is worth looking at all the scholarships, grants and grants the university offers. It is believed that these are only offered to low-income students, or who have excelled in a particular sport or subject.

But there are more unusual scholarships and grants that are offered. For example, the Vegetarian Charity offers grants for vegans and vegetarians aged 25 and under, worth up to £500.

And the Graham Trust Bursary Scheme offers students with the surname Graham who attend university in the Glasgow area up to £500.