The 244-bedroom scheme has been designed by Maccreanor Lavington for Joseph Homes and Alumno and was considered at Monday night's meeting of Southwark's planning committee.
Planning officer Patrick Cronin pointed out that the scheme is well located for students of both London South Bank University and the London College of Communication.
On design, Mr Cronin told the committee that "the rounded corners of the building would soften and sculpt the massing".
The council will receive a financial contribution in lieu of affordable housing. The inflation-linked payment is today valued at £8.54 million but is likely to exceed £11 million.
David Campbell, managing director of Alumno, told councillors: "We seek to blend our investment in local communities with cultural placemaking, so creating places that make a positive contribution in social, economic, cultural and architectural terms."
Mr Campbell said that the Rockingham Street proposal represented "optimisation of a brownfield site".
Committee member Cllr Bethan Roberts took issue with the use of the term 'two-dio' to describe the small number of two-bedroom units in the scheme and implored Alumno to find an alternative moniker.
The committee resolved unanimously to grant planning permission.
A 21-storey office scheme for the same site was approved in 2019. An earlier residential proposal was given the green light in 2014 but the site has remained vacant.