$1800 will get you only a 1 bedroom in Cole Valley these days - and not even a nice one. Tech Bubble 2.0 and all that. Anything on the east side of the city is through the roof, really, especially if it's a nice neighborhood like Cole Valley or Duboce. Moreover, as soon as Facebook goes IPO everyone expects alllll the Noe Valley homes to get bought up by the new millionare types.
But you can still get a good 2BR in the Inner Sunset or the Inner Richmond / north of the Panhandle (near USF) for the low-to-mid $2000s, and it will easily be five times as big as this place. You can do even better in the outer mission or Ocean View / Taraval (near CCSF), and quite fine in the southwestern corner by the main UCSF campus. Mission Bay students have it a little harder if they're not in on-campus housing - perhaps somewhere in the Bayview? Of course, Mission Bay campus is a short walk from the Caltrain depot, as well, and the transfer to a streetcar from BART is doable.
I still suspect that apartment is for PARTYING PARTYING every night and living the Bohemian lifestyle where you're mostly in your place to sleep and occasionally study. Their parents are paying for it. The price premium is because "we can easily sell this to the rich parents who are only in town a short period of time".