Over half of students stress about managing their cash, and barely a third have an organised budget. Students typically depend on loans for 80per cent of what comes in, while living costs – from rent to partying - vary widely between university towns and cities.

The findings from the Royal Bank of Scotland student living index come as the banks set out their stalls to attract new customers from this summer’s batch of soon-to-be freshers.

Edinburgh is the most expensive place to study, with above average rents plus much lower than average term-time income, according to the index based on the finances of 2500 UK students at 25 universities.

Hopping across the Border for a course at Newcastle would be the third cheapest option. Dundee, where average rents are £15 lower than the UK average at £94.49, is the tenth most affordable place to study while Glasgow, with rents at £95.16, comes in sixteenth.

“Only one in 50 take fees into consideration when deciding which university to attend,” Dan Jones at RBS says. “Other concerns such as subject choice, university reputation, distance from home and the cost of living were more important for 98per cent of prospective students.

“The research found over half of students are stressed about managing their finances with less than two in five having a dedicated budget.”

The majority of a student’s income comes from student loans, which on average are £161 a week, four times higher than any other source including part-time work. The bank of mum and dad is the next biggest contributor.

Travelling home costs students around £300 a year on average, which helps to explain why two banks - Santander with a free four-year National Railcard and RBS with a four-year National Express Coachcard - offer travel perks with new student account openings.

Meanwhile the annual bank account beauty parade is under way.

Rachel Springall at Moneyfacts.co.uk comments: “Students must be wary not to impulsively choose a bank account simply for the upfront perks.”

Banks advertise headline overdrafts ranging from £1400 in year one (Cooperative Bank) to £3000 (Halifax, HSBC). But Ms Springall says: “Other accounts spread the amount given to students over the years of their study, which can be a much more sensible option for some. However, as with any bank account, it’s worth noting that the biggest overdraft limits are not a guarantee as applicants will be credit checked, so having a good credit score is important.”

She adds: “Using an overdraft facility is an effortless temptation. There is a huge danger of racking up a large amount of debt and not being able to pay it back when the time comes, which is why students should do everything in their power to use it sparingly and do their best to earn additional income to reduce what they owe.”

So what of the future?

Ahead of graduation, male students expect to start on a salary of £22,988 on average, but for female students the expectation is only £19,662, according to this year’s national student money survey by the Save the Student website.

“The surprise figures follow reports that female students hold the majority of university spaces, get better grades, and are more likely to be in work than male students six months after graduation,”says Save the Student's editor Jake Butler.

“ But the message isn’t getting through to female students, who report feeling less confident about money in general.”

Student loan repayments begin, at the rate of nine per cent of income a year, when graduates are earning £21,000 – and that threshold is set to be frozen until 2021 despite a promise made by the government in 2010 that it would rise with inflation from next April.

This year’s new students in Scotland are likely to graduate with an average £20,000 of debt in 2019, according to a report this month by Audit Scotland. It said average student debt was at £11,281 last year, less than half the £23,777 in the rest of the UK, but was set to rise sharply over the next three years to narrow the gap.

Loan funding in Scotland almost doubled from £175m to £336m last year as funding shifted from grants to loans. The Scottish Government however says Scottish graduates still have the lowest debt, and the minimum income guarantee of £7625 for the poorest students living at home is also the best anywhere in the UK.

Around seven out of 10 Scottish students borrow the maximum maintenance loan of £5750 a year – which falls to £4750 in households with an annual income above £34,000.

Outstanding student debt however is written off after 30 years, which means that unless graduates start on a salary of £32,000 they are unlikely ever to have to repay all of it.

This means that Scots deterred from studying in England and Wales by the £9000 tuition fees should consider that, if they are moderate earners in their career, they are likely to be no worse off after 30 years despite taking out tuition fee loans.