Student Finance’s Ignorance to London-Living

As a student studying in London, I am fully aware of the costs incurred in living in the country’s capital. However Student Finance missed the memo.

Student finance gives loans to students based upon their parent’s household income, this allows for poorer students to receive a larger loan whilst also getting some free money in the form of a grant, to ensure that they are able to get their degree.

Another criteria that changes the amount of the student’s loan is whether you are living in London or not. Student finance’s largest maintenance loan available outside the capital is £5,555 in comparison to £7,751 for the contrary, modest 39.5% larger.

MAXIMUM MAINTENANCE (LIVING) LOAN

Academic year	Living with parents	Living away from home	Living away from home (London)	Living away from home (overseas)
2012/13 and 2013/2014	£4,375	£5,500	£7,675	£6,535
2014/15	£4,418	£5,555	£7,751	£6,600

You may think this is quite a lot and could more than cover the extra costs.
But you couldn't be more wrong!

The main out goings for a student will of course be the price of his/her rented accommodation, and this will be expected to mainly be paid for by his/her student loan. 

So let’s have a look at average rental prices in London and in the rest of the UK.

This shows average prices for a 2 bed flat in greater London (orange) compared to outer London average (yellow).
- Per person per week in London in May 2014 it cost £155.
- The average outside of London was half of that (£77.50)

Over a university term (42 weeks) the two would pay very different prices for their accommodation.
- Non-London student: £3,225
- London Student: £6510

Deducting the rent from the student loan, the two students after rent would have very different personal finances, the non-London student would have £2,330 left over to contribute towards living costs whereas the London student would have only £,1241 – nearly half of the non-London student.

This is even more shocking as the price of living is more expensive in London, so the London student is even worse off than just the hit they take from the high property prices.

But who ultimately pays this deficit of funds? The parents.

Therefore Student Finance England truly fails those students seeking a top class education from the country’s capital and the parents of these students.

Personally I would like to do a study into how much of a financial strain student finance’s cock up is on families with children that go to London universities, however I don’t have time – I've got to hunt for a job.