We have now removed the local area students rule so that everyone local can also apply and have equal chance at gaining the accommodation they wish
So you don't have to worry about that!
The business school is within the city campus yes
I currently live in Private accommodation, found through estate agents and what not. And I pay less than what you would do in halls, it depends on where you live for one thing! Heaton is far cheaper than Jesmond, but to me, I don't see much difference between the two areas that makes Jesmond that much more expensive. I'm assuming if you were to get private accommodation and it be a Quayside studio flat to yourself or something then yes it would be that expensive, but you probably aren't going to do that :P
Just to clarify, your tuition fee loan is completely separate from your maintenance loan/grant. You will never see the tuition fee loan as it paid directly to the university from student finance in two installments. So you don't need to worry about paying for that full stop as if you are applying for the tuition fee loan (which i'm assuming you are), that'll be sorted for you and one less thing to worry about.
You then get a maintenance loan (unsure if they have changed the name of this now), and a grant, depending on your income. If you are of a lower income (like me! :P), you get about 3.5k loan and 2.9k grant. The grant you do not have to pay back.
If you are living in halls that cost £100 per week, you'll be paying about £4400 for the year. But with your money coming in 3 installments, and the university charging rent in 3 installments, it is easier to manage your money. The university also offers bursarys and scholarships to help throughout the year if you are struggling with money. It will be tight, but with you having all your bills covered, internet and living so close to the city centre, the only things you will end up spending your money on, are booze and food more than likely :P
It does seem like a horrible amount of money to be disappearing for rent, but you are also paying for the halls experience too. I never went into halls and It was probably the worst thing I've done since coming to university. I missed out on meeting a bunch of new people and friends. Everyone will be pretty much in the same boat as you, so don't worry too much