I can't really talk about what one should or shouldn't do RE; student living, as I don't have a student loan - I have a very conveniently rich uncle who's only thing to spend his ludicruous amounts of money on is his nephew and neice's education.
So right now I get living allowance from my family, so I guess I'm fairly privileged. Eventually I will have to get a loan I suppose, but my family said it's such a hassle to have when I don't need to.
I get a set amount a month, which sometimes feels like I end up having to money manage more than those with loans, but at the same time, I know in emergencies I can ask for more money from my family.
Halls just feels like a nice transitional living period, I met loads of friends through it etc.