The class of 2007 received their A-level results this week and, all being well, will now be preparing for a new life on campus. It is not only their livers that are likely to take a hammering during three years at university; research shows that their bank balance will suffer, too. A survey by Barclays has found that students left university last year with an average debt of £13,500.

To avoid falling deeply into debt, many students work during term time, says Gemma Tumelty, of the National Union of Students. “One in five students works more than 20 hours a week and an increasing number miss lectures because they are having to work part-time,” she says. “A better balance is needed between avoiding debt and having a good academic experience.”

The high street banks, for their part, tempt students with interest-free cash, as well as sweeteners, such as railcards, web cams or hard cash. But in this year’s roll call of student account packages there are signs that the banks also want to encourage students to be more responsible.

Gone are the lavish free gifts of the recent past, such as iPods from Halifax, and mp4 players from HSBC. This year, for example, Lloyds TSB has opted for free one-year Youth Hostel Assocation membership, free mobile-phone insurance and a free NUS Extra discount card. The bank has also tacked on the promise of £75 in cash to new applicants, but the money isn’t instantly available, cautions Lisa Taylor, of Money-facts, the comparison website.

Ms Taylor says: “It actually means £25 upfront and the rest after ten months, but only if you stay in credit for the year and make three deposits. So the cash offer will probably only apply to students who already get enough support with their finances and who need it least.”

Barclays is offering the relatively sober enticement of six free cinema tickets. In fact, only the Royal Bank of Scotland group, which includes NatWest, appears to be sticking to the old model of tempting students with electronics. This year, in a deal with Microsoft, it is giving away free webcams to students who open either the RBS Student Royalties account or the NatWest Student account. Natwest applicants also receive a free microphone and a five-year railcard, providing discounted rail fares.

Ms Tumelty says: “Students need to get the right package for them and not be swayed by the most attractive free gifts. Look at what support will be there for you and whether your bank has branches on campus.”

All the banks now insist that free overdraft limits are only “up to” figures and won’t be available straight away. So students who don’t arrange a free overdraft before slipping into the red could face charges that will only compound any debt problems.

LLoyds TSB is offering students a tiered free overdraft in their first year, capped at £500 in the first six months and rising to £1,000, then £1,500. Because these are all “up to” figures, however, not all students will be eligible for the full amount. The interest rate of unauthorised overdrafts is also one of the highest, at 29.8 per cent.

Halifax is advertising a staggering £2,750 maximum interest-free overdraft, but it is not available automatically when the account is opened. Jason Clarke, of Halifax, says: “The free overdraft is there for students, but you have to ask for it.” The charge for exceeding the overdraft limit without asking first is £20.

HSBC has a no-frills package that follows on from its decision last month to scrap free overdrafts for graduates. But the free overdraft does remain for students, rising from £1,000 to £1,500 over three years. The account has a low agreed and unagreed overdraft rate of 9.1 per cent and no overdraft extension arrangement fees. NatWest offers students an overdraft of up to £1,250 in the first year and £1,600 after three years and has an unarranged overdraft rate of 17.81 per cent.

Kevin Mountford, of Moneysuper-market.com, the comparison website, says: “The penalties for stepping over an agreed overdraft limit can be steep. Royal Bank of Scotland and Lloyds TSB charge a fee and almost 30 per cent interest. HSBC and NatWest both offer a good all-rounder for students with two of the lowest rates for unauthorised overdrafts.”

For those who are better with finances, or have generous parental support, Yorkshire Bank and Clydesdale Bank offer in-credit interest of 3.25 per cent. But with no guaranteed free overdraft and few incentives, it won’t tempt most students.

Ms Tumelty says: “There has been a massive bursery underspend at universities because students don’t know what help they can apply for. Check what other avenues of money are available before maxing out your overdraft. Whatever money you borrow, remember you’re going to have to pay it back. It’s not your money.”

Six of the best on steep learning curve

STELLA PRICE, 25, of Putney, southwest London, studied psychology in Sheffield but is now doing a second undergraduate degree at King’s College, London, in medicine. She finished her first degree with a £1,500 overdraft, but has paid off £500. She says: “My first student account was with Lloyds TSB, but when I started my second degree I opened a NatWest student account, mainly for the five-year railcard. It saves me a lot of money on the cost of train fares to Sheffield to catch up with my old university mates.

“I am trying not to spend money freely on my debit card, by taking cash out at the start of the week and just spending that.” DANE SCOTT, of Brockwell Park Gate, South London, studied business finance at Durham University. His advice to current and new students is not to get tempted by credit cards. “The debts just build and build and you can never pay them off,” the 23-year-old says. “I had two cards while I was at university and ended up with £3,000 of credit card debt when I finished.

“It is silly not to utilitise your interest-free overdraft, even if you just take out the money and put it in a savings account.” LAURA MARJASON, of Oxsted, Surrey, is studying history at Oxford University. The 19-year-old says: “My dad was really proactive about looking over all the student accounts and helped me to see what was available. You do have to sit down and look at the details so you can make the right choice. I opened an account with Smile.co.uk because it was online and had a favourable interest rate. That it is owned by Cooperative Bank, which has a good moral banking code, was a bonus.” AIDAN WEARMOUTH, 19, of Fakenham, Norfolk, is studying accountancy and finance at the University of East Anglia. He says: “I opened a current account with Halifax when I was 13 and have stayed with it ever since. The online banking is good as it lets me see all my accounts in one place and allows me to transfer money between them easily.” TOM IRISH, 22, of Brentwood, Essex, studied Media Studies at De Montford University and graduated in June. He has been with Lloyds TSB since he was a child and didn’t think it was worth switching. He left university £1,500 overdrawn and had a student loan to pay off. His advice? “Whatever seems like a good idea to do with your money when you start university probably isn’t! Suddenly you are given access to lots of money, but you have to remember that you’ve got to pay it all back!” JOSHUA PORTER, 18, of Oxford, is going to Cardiff University to study criminology and sociology. He has a student account with Lloyds TSB, having joined the bank while at sixth-form college. “I will steer clear of student credit cards,” he says. “I have one already but only for emergencies.

“I am planning on getting a job in a bar and I have a notebook I use to write down everything I spend. I get all the receipts after a night out. An interest-free overdraft can get drained very quickly with things that aren’t essential.”