SiO Rental Prices for Student Housing Increase Again, Putting Financial Strain on Students

– It is clear that SiO does not care about the students, says Master’s student and SiO resident Håvard Sirevåg (23).

From and including 1 August 2023, the rental prices for the Students’ Association in Oslo (SiO) residences will increase by 4.9 per cent. This is a one percent higher increase than the previous year.

At the same time, students’ finances are affected by rising prices for food, electricity and public transport. In 2022, Danske Bank conducted a survey among students, which showed that 20 per cent felt that they had fallen down or depressed as a result of their financial situation.

– I go into the red every month, says Sirevåg.

– Stressful

Every month, Sirevåg receives NOK 8,787 in payments from the Government’s loan fund. He spends NOK 7,200 on rent and NOK 511 on a monthly ticket. After paying other fixed expenses, he is left with approximately NOK 300 for food and other necessities.

For Sirevåg, it becomes almost impossible to maintain a varied diet, and several days may go by without a topping on the bread slice.

– It’s stressful. I think it will be difficult to prioritize how the money will be used.

Sirevåg is aware that the financial strain goes beyond study habits. Nor does he have any money left over to invent things in his spare time.

– Early last autumn I was out with friends at least once a week. Now it will only be once a month.

At regular intervals, he does project assignments alongside his studies, which means he gets some extra income.

Increase in costs

The chairman of SiO, Stine Johannessen, explains that the co-shipping has had a significant increase in operating and maintenance costs, but that the new price is nevertheless lower than the increase in costs. She says that this is the reason why the increase is higher than last year.

– Many students cannot afford it, and for SiO it is therefore important that we always have as low a rent as possible. Our agreements also include energy and internet, writes Johannessen in an e-mail to Dagbladet.

Figures from Eiendom Norge show that rental prices on the private market in Oslo have increased by 11.9 per cent the last year. The figures worry Johannessen, considering how many students live privately.

– We are concerned about the students’ finances in the current situation. Study funding is nevertheless the responsibility of the authorities. Our task is to offer student welfare, and we have a large range of services that exist to ensure that students can have a good and safe study day.

She thinks it’s a shame that some might perceive it as SiO not caring about the students.

– The students are always our main priority. We are not in the business of profit, says Stine.

– Lump in the stomach

Andreas Wilhelmsen studies product design at OsloMet in Kjeller, and from autumn he has to pay NOK 352 more a month for the dormitory in Lillestrøm student town.

Alongside his studies, Wilhelmsen works in a plant shop. There he has to take on at least seven shifts a month to get by.

– I have to drop several lectures, and I don’t get as much time to study. I have to be in the workshop a lot at school, and it is therefore not so easy to work from home.

The many expenses mean that Wilhelmsen does not have the opportunity to save money. Last month he went completely to zero. The student fears what will happen if unforeseen expenses arise.

– It’s the worst feeling, and I think it’s humiliating to borrow money. Then I’d rather only eat once a day.

The increase in the price of food has meant that Wilhelmsen has become more observant of consumption. He follows up on offers, and tries to create routines.

– I have become a miser. I get a lump in my stomach every time I see news that prices are going up.

Requires increased support

The Norwegian Student Organization (NSO) often receives inquiries from students who are struggling to make ends meet. In addition to being able to afford food, they must take care of their health and have a safe place to live.

– We expect the government to lift the student grant once and for all, so that students today and in the future can be confident that they will cover the necessary expenses, while also having time to study, says manager Maika Godal Dam.

NSO has drawn up a budget which shows that students lose almost NOK 6,000 each month if they only live on student aid. They are working to ensure that the student grant is linked to the basic amount in the national insurance.

– Today, students receive NOK 128,887 a year. Our demand will give students around NOK 40,000 more per year.

Increases student aid

From the autumn, the government will increase student aid by seven per cent, which corresponds to NOK 9,000 a year. According to State Secretary Oddmund Løkensgard Hoel, this will give students increased purchasing power.

Hoel points out that rent is the biggest single expense for students. In order to reduce housing costs, the Ministry of Knowledge must increase the pace of development of student housing. The aim is 3,000 homes a year nationwide.

– It is the boards of the individual cooperatives that decide the rental prices and we expect the cooperatives to do their part to keep the rental prices down, writes Hoel in an e-mail to Dagbladet.

– Horrible

Annja Edyta Johansen is a leader in the voluntary student association Student Support Oslo, which provides students with psychosocial services. They constantly receive inquiries from students who are in financial difficulties.

According to Johansen, several students only have a couple of hundred kroner to spend on food a month, and several have to live on oatmeal.

– When you are in a bad financial situation, it can affect your psyche, which in turn affects how you deal with your studies and other things in life, explains Johansen.

She is not impressed that the rent is increasing.

– It’s horrible. We, who are Norway’s future, will be hit the hardest, it’s another blow in the face.