Fortunately, many students can afford to enjoy a slightly higher standard of living, but it can still be a struggle to make ends meet, especially when factoring in high accommodation costs, expensive textbooks and the shadow of more than £9,000 of tuition fees to be paid on graduation.
Student loans are a saving grace for many a struggling student. They provide three lump-sum payments during the academic year to help meet the costs of day-to-day living.
During 2006-07, the Student Loans Company lent undergraduates £3.4bn, up from £2.9bn the year before. Exactly how much each student can receive depends on their personal circumstances, taking into account household income, where they will live during their degree and how much of a maintenance grant they are entitled to.
In 2007-08, then, the maximum student loan for maintenance is £4,510 for students outside London and living away from home, or £3,495 a year for those still living with their parents - and £6,315 a year for those living away from home and studying in London.
Regardless of their household income, students can apply automatically for 75 per cent of the loan for maintenance, with the remaining 25 per cent being income-assessed.
Rates on the rise
The interest on student loans, which is linked to the Retail Prices Index from September 1 to August 31 each year, will rise to 4.8 per cent in September.
But even though the interest rate has almost doubled from a year ago, compared with other loans available on the market (only a handful now offer deals below six per cent) the student loan is still one of the cheapest - short of the bank of mum and dad - anyone will ever take out.
This may not be the case in the future, however, with government plans to privatise the SLC and talk of commercial rates of interest.
At present, those fortunate enough to have parents who can foot the bill for their children's university education may find taking out a loan, even if they do not need to, is a smart investment. This is especially true if the money is placed in a term account paying in excess of 6.5 per cent, a fixed-term bond or a cash Isa.
Loans for the less well off
For students without rich parents, financial help is at hand in the form of non-means-tested loans, paid directly to the higher education institution to cover tuition fees. These are available for up to £3,070 a year for most universities in England and Northern Ireland.
Students from low-income families may apply for a maintenance grant of up to £2,765 a year. Those with a household income of up to £17,920 are eligible for the full amount, and those from homes receiving between £17,921 and £38,325 qualify for a partial grant.
Those who are eligible for the full amount will receive a bursary from their university or college of at least £305 and up to £3,000. Last year, the average bursary was around £1,000.
Despite all the financial support available, and getting extra cash from part-time work, most students will be saddled with debt when they start their working life. Repayments begin the April after graduation, when nine per cent of earnings over the £15,000 minimum earnings threshold are taken from the monthly salary at source.
Just be warned that graduates have experienced problems with loan repayments - the SLC gives few updates of the balance graduates owe, and in some cases has continued to take repayments out of salaries even when graduates have already paid off their debt in full.
Postgraduate options
With increasing numbers of graduates fighting it out for the top jobs, many students are turning to postgraduate degrees to give them the edge.
There are a number of funding options for postgraduate study. Most universities offer studentships, which can cover course fees and provide a living allowance. There are also various bodies, such as research councils, which offer funding.
Students forced to turn to the high street might consider a career development loan from the Learning and Skills Council or professional studies loans, offered by HSBC, Lloyds TSB and NatWest, which cater for those studying for a professional qualification or enrolled on diploma, masters' or PhDs. Tweet