University tuition fees in England are to stay frozen at £9,250 for the next two years, says the government.
But students face a further squeeze on living costs with maintenance loans rising by 2.8% from this autumn.
The Save the Student money advice website said it was a "devastating blow" after loans rose just 2.3% this year.
In addition, the government has said it will give a further £15m to hardship funds at universities.
The National Union of Students (NUS) welcomed financial help for students but said hardship funds were "a quick fix to a long-term problem".
