Increasing numbers of students are relying on government funding to survive at university, research shows.
Students are not taking advantage of other forms of borrowing as much this year, such as high interest credit cards, according to the Halifax survey.
Six in ten students relied on the government student loan to support their studies this year, compared to just five in ten in 2008.
Meanwhile, the number borrowing elsewhere to fund university and other higher education has slipped from 41 per cent to 29 per cent over the 12-month period.
More than a third (36 per cent) are still using a credit card of some description to fund student spending, while two thirds are relying on their overdraft to support themselves.
Commenting on the findings, current account director for Halifax Mike Regnier said: "Unfortunately, our research shows that for most students borrowing is necessary to fund university.
"However, some careful financial planning can help reduce both the level and the cost of this debt. Setting a budget and sticking to it is essential."
Many students were faced with a financial shortfall at the start of the new academic year, with the Student Loans Company delaying loan payments to some due to the backlog of applications.
