The unflattering stereotype of the average student, enjoying daytime soap operas or lazy afternoons in the pub, could soon be a thing of the past.

This week Times Money spoke to a group of new and existing students about the financial pressures facing undergraduates today. The picture that emerges is of students who are financially savvy and determined not to wind up heavily in debt. But it isn't easy. Far from lolling around, most need to take part-time jobs to stay afloat.

Luke Eversley, who is about to start a drama course in London, confidently says: “I honestly don't think I'll get into any debt at all. I'm very good at managing money.”

However, if he succeds, he will be in the minority. It is estimated that undergraduates leaving university in 2011 will owe an average of £21,500 to the Student Loan Company, banks, building societies and credit card companies. To make matters worse, the slowing economy means that fewer students will be able to call on their parents for extra financial support.

About 87 per cent of parents questioned by the Association of Investment Companies said that rising living costs, fuel prices and mortgage repayments will have a knock-on effect on the amount of cash that they can offer their children.

Mr Eversley's father, Paul, says that he will provide financial help if required, but it seems that not all students will be so lucky. So how can they avoid slipping deep into the red and be less reliant on the bank of mum and dad?

Almost 50 per cent of students will be forced to find a job during this academic term, according to figures from Lloyds TSB. Beth Healy, of Sutton, southwest London, is beginning her second year studying fashion promotion at the University of Creative Arts in Epsom. The 20-year-old does not receive any financial help from her parents, but she lives

at home to save money. Her grandmother gives her £100 a month to cover the cost of running her car, which she uses to drive to the campus. Miss Healy also works up to 20 hours a week at a hotel. She says: “It can be stressful juggling work with reading, essays and course deadlines, particularly around the exam time.”

David Malcolm, of the National Union of Students, warns prospective students not to commit themselves to more than 16 hours of work a week. “More students than ever are working part-time. But doing any more than that can have a significant effect on your final grade,” he says.

Alison Clark, director of the National Association of Student Employment Services, recommends that students use a university job centre to find work, because employers that are advertising will be mindful of students' course commitments, particularly around exam season. New students should start looking for work as early as possible, Ms Clark says, and register with their university's employment service before the beginning of term.

“It is good to get a head start because there is so much competition,” she says. “If you are living away from home, familiarise yourself with the local area, so you can spot jobs close by, and ensure that your CV is up to date.”

Ms Clark also recommends checking local papers and high street employment agencies. Alternatively, prospective students could wait for National Student Employment Week, which begins on October 6 on campuses across the country.

Those who do work may be surprised to find that they are taxed on their wages. Students are not exempt from income tax rules, but most will not earn more than £6,035 in a year, the personal allowance that all workers can earn tax-free.

Students should give new employers a P45 from their previous job, or fill out a P46 form to prevent too much tax being deducted. Tax can be claimed back from HM Revenue & Customs. Check the student tax checker at www.hmrc.gov.uk.

However, even students who take a part-time job are unlikely to be able to avoid getting into debt. Almost every new undergraduate applies for a loan from the Student Loan Company. The first component is used to cover the cost of the degree course. The second is available to cover living costs and is paid directly into a bank account. It can be up to £6,475 a year in London or £4,625 a year elsewhere, though the amount is means-tested and based on household income.

The interest rate of the loan is pegged to the retail prices index, a measure of inflation, in March each year. For 2008-09, the interest rate is 3.8 per cent.

Mr Malcolm suggests that students transfer the loan to a high-interest account at the beginning of term and then move a small amount into a currrent account each week. Kaupthing Edge, the Icelandic bank, has an internet-only instant-access account paying 6.55 per cent on balances of more than £100.

You do not have to start paying back the loan until the April after graduation. The Revenue will deduct 9 per cent of your salary through PAYE when your annual earnings are £15,000 or more.

Most student current accounts include a free overdraft facility. Halifax and the Bank of Scotland are the most generous this year, offering up to £3,000 to students in their first year. Other high street banks tier the overdraft, so that it rises from about £1,000 in the first year to £2,000 in the third year. However, the size of the overdraft is not the only thing to consider. Johnny Rich, editor of Push.co.uk, the student website, says: “Find out how long you have to pay it back once your course is over.”

Banks also tempt students into opening accounts with other discounts and freebies. One of the most popular is the free five-year Young Person's Rail Card, from NatWest. The card offers discounts of up to a third on train fares.

Research by Halifax shows that about 37 per cent of students also have credit cards, owing an average of £220. The bank says that students tend to stick to the minimum monthly repayment, typically about 2 per cent. At an interest rate of 18 per cent, it would take more than 12 years to clear a balance of £220 by making the minimum payments. This would cost the cardholder an extra £252 in interest.

Grants, bursaries and support

From this month even students with parents who earn up to £60,000 will qualify for some financial help from the Government.

The Department for Innovation, Universities & Skills has raised the thresholds for students who qualify for maintenance grants. Students will qualify for the maximum grant of £2,835 a year if they come from a household earning less than £25,000 a year. Students from households that earn between £25,000 and £60,005 a year qualify for a partial grant. Grants do not have to be repaid.

On top of maintanance grants from the Government, poorer students should make sure that they receive the full bursary to which they are entitled. Universities are required to offer at least £310 to students in England who qualify for a full maintanance grant and who are paying full tuition fees, but many universities pay a lot more. For details, visit www.studentfinanceengland.co.uk.

Those seeking financial support should also check out the Educational Grants Advisory Service at www.egas-online.co.uk. This has a database of grants available to students of certain subjects or from certain backgrounds.

If you run out of cash during the term ask your student finance office about the Access to Learning Fund, which can help in a cash emergency.

Case Study: Much-needed helping hand

Daniella Perano is returning to the University of Leicester to start the second year of her joint honours degree in French and Spanish. Miss Perano, pictured with her father, Giovanni, is moving into a house with four other friends. Her father will pay her rent of about £230 a month and will also help with household bills.

Mr Perano, a 54-year-old retired restaurateur, paid £3,500 for his daughter's accommodation last year and says that he would rather support her financially than risk her studies suffering because she has to work part-time. He adds: “I would not stop her working, but while I can afford to give her a hand, I will.”

Miss Perano has a current account with NatWest, receives a student loan of £3,000 a year and a government grant of £2,600, which she does not have to repay. She also picks up £900 a year in a bursary from the university.

“I do not have a credit card and I am not overdrawn,” the 19-year-old says. “I hate the thought of coming out of university and working for years to pay off huge debts.”

She plans to find a job next summer to pay off any debts and save some cash to help to pay for her third year at university. But if she finds that she is struggling for cash in the meantime, she will speak to her father. “I know he is there for me if I get stuck,” she says, “but I don't want to be financially dependent on him.”