Student life in Cyprus is no longer just a period of learning, experience and personal growth. In 2026, it comes with mounting financial pressure, as the cost of living remains high and housing continues to be the greatest challenge for thousands of families. Despite improvements to the student grant announced by the government, due to take effect at some point in the future, the question that arises is whether state support is sufficient to cover a student's real needs.
Increase in the student grant
Speaking at the PASSY (POFEN) conference on Saturday, 18 July 2026, Education Minister Athina Michaelidou acknowledged that the cost of studying, housing and student welfare are serious issues linked to equal opportunity. She said efforts to upgrade the student grant and benefits with updated criteria are continuing, adding that the ministry would strengthen its cooperation with POFEN's new leadership.
"It is no coincidence that several universities are trying to fill part of this gap with their own support programmes, while student halls of residence continue to be built."
Speaking at the same conference, House President and DISY leader Annita Demetriou said the student grant needs to increase substantially, as it has remained at roughly the same level for the past ten to twelve years, while the cost of living, inflation and housing costs weigh on students and their families.
POFEN president Konstantinos Karseras, presenting a review of the 2025-2026 term, said the union had intervened when more than 10,000 applications for state student welfare remained pending, as well as over internship allowances, scholarships and housing, while also taking part in parliamentary committees and institutional bodies.
High rents
Despite these interventions, Cyprus's largest university cities, Nicosia and Limassol, continue to record particularly high rents, driven by strong demand for apartments. A small studio or one-bedroom flat can cost between €550 and €850 a month, depending on the area and the condition of the property. In several cases, particularly in Limassol, prices exceed even these levels, forcing many students to share accommodation or look for housing well away from their university.
Fixed costs
Beyond rent, there are fixed costs to consider. Electricity, water, internet and communal building fees can add a further €100 to €180 a month, while food costs typically range between €250 and €350. Add in transport, textbooks, technology equipment and personal expenses, and a student's total monthly cost of living can easily reach or exceed €1,100, not including tuition fees at private universities.
"The education minister acknowledged that the cost of studying, housing and student welfare are serious issues linked to equal opportunity, and said efforts to upgrade the student grant and benefits are continuing."
"Essentially, families are maintaining two or three households, without having the money to bear that weight," Maria Ioannou, who has two children studying at private universities, told "Ora gia Spoudes."
Housing pressure
Housing continues to absorb the largest share of family budgets. "It is no coincidence that several universities are trying to fill part of this gap with their own support programmes, while student halls of residence continue to be built," in an effort to meet student needs.
A notable example is the Cyprus University of Technology (CUT), which for the 2026-2027 academic year is offering a rent allowance of €250 a month for ten months, totalling €2,500, to students who meet specific socioeconomic criteria and rent accommodation in Limassol or Pafos. The university is also providing more than 110 scholarships of €1,000, as well as a €500 catering credit for eligible students at university cafeterias. Universities across the board are attempting to offer students support through various allowances and grants aimed at covering their needs.
Enhanced grant
Against this backdrop, the government proceeded in 2026 with changes to student welfare, expanding the number of eligible recipients and increasing the amounts of the state student grant.
Under the new arrangements:
- Eligibility is widened through a €5,000 increase in the income threshold
- The student grant is increased by 10% for families with an income of up to €44,000
- Eligibility is further expanded through the removal of income and asset criteria for large families (with more than five children)
- The restriction preventing recipients from also benefiting from other tax relief measures is lifted
In addition, there is now scope to extend the deadline for submitting applications for state student welfare, following a recommendation from the Ministry of Finance and a decision by the Council of Ministers.
A difficult equation
The reality is that for many families, studying remains a particularly costly investment. A single academic year can require total expenses of several thousand euros just for accommodation and basic living costs, without factoring in tuition fees, travel abroad, equipment or emergencies. This explains why an increasing number of students work alongside their studies, mainly in catering, retail and services. While work provides a significant financial relief, it often limits the time available for study and adds to the pressure of daily life. The increase in the state grant is undoubtedly a positive step, widening access to student welfare for more families. However, the cost of living continues to rise faster than state support, keeping the financial burden particularly high.
