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.

Eva Crossan Jory, vice-president for welfare at the National Union of Students, said the survey echoes its findings that many students are struggling to cope financially. A recent NUS report on student housing called upon universities to offer more affordable options after finding that 1 in 6 students are unable to keep up with their rent payments, while nearly a third struggled to meet course costs after paying for housing.

“More and more students are balancing university work and caring responsibilities and often student parents are hit the hardest through unfair funding systems,” Crossan Jory said. “Central government should address the way in which student support is calculated to ensure that it takes into account rises in the cost of living for learners.”

Financial stress has been linked to poor mental health in students, but just 40% of those surveyed said they felt supported by their university to manage their finances.

Last week the government announced plans to roll out a new course aimed at preparing sixth formers for independent living, including money management.

Family members accounted for the next major source of student income, footing an average of £221 per month. The government expects parents to top up the student loan through the means test, which allocates a lower loan to students from higher income backgrounds. However it doesn’t make this contribution explicit, and not all parents will be aware that the system is predicated on their support.

The report shows that the benefits of parental support are unevenly felt across the UK, with those studying in Oxford, Durham and St Andrews receiving the most financial help from their parents.

Meanwhile, students in Manchester, Poole and Aberdeen earned between £157.60 and £167.70 per month through part-time work.

The report also noted that the time students spend on their academic studies has dropped by 10 hours per month since 2018, with time spend on unpaid work experience tripling. The students surveyed reported feeling worried about their job prospects after graduation, with 42% concerned about their financial futures.