I'm a lead engineer working for a global company and been involved in the recruitment process from both sides - when looking for jobs before graduating from Uni and when hiring STEM people in for such jobs. I also volunteer to support students and graduates to help them build strong CVs and to perform well on their interviews. Just to give you an idea where my opinion comes from.
On general terms, I think you should only go to university to get a degree if you know that you need that degree to get into that profession of your choice and that there is no other feasible way for you to get there otherwise. In my case that was why I did it and one of the reasons was time - it only takes 3 years to get a BEng to prove to vast majority of employers that I am a knowledgeable engineer.
That being said, you definitely need some work experience before you graduate. And before you start throwing stones at me remember that there is plenty of opportunity out there to do a summer placement or even better a 12-months internship before you graduate. Just by having at least a 2:1 predicted grade and having some relative work experience will set you so much further apart from the competition that you will get a graduate job without much of an effort, assuming you know how to write a good CV and how to present yourself on an interview. At least that's the case for STEM related subjects, I have very limited understanding of other fields. A STEM graduate will have an average salary of £28K-£32K, which is more than enough to pay off your student loan without thinking too much about it. Unless you live in London, don't live in London if you rent, but that's a separate topic.
From employer point of view, you won't believe how many times a saw a CV from a graduate candidate who hasn't done anything else apart from studying at university and completing their degree. Not just relative work experience, but also zero other work experience and zero other relative activities the candidate could have participated in. Heck, at least do some projects in your own time to prove that you can connect theory with practice. Design a robot, write some code, get a Github page with commits, do something. Show that you love what you learnt.
It definitely feels that many students mistakenly assume that a degree will automatically grant them a job after they graduate. They will not. Remember that there are hundreds of thousands of students graduating from universities all across the UK every year! You can google the statistics and what have you, but if you get a 1st class degree + if you have at least a summertime worth of relative work experience + you have a well-structured CV and you know how to perform on the interview, I can guarantee that if you apply to 20-30 graduate jobs, you'll get 3-5 job offers at least, all paying upwards of £28K.
Treat university as a tool to get where you need. Studying at Uni is not the goal, it's just a step. Otherwise the Uni will be a waste of time and money.