Hey,
at Loughborough I applied for a Masters degree in Sport and I am currently studying in Durham.
To be honest I don't know much about Loughborough outside of my subject either, but business seems to be rated (meaning a 'Top 10' Uni for this subjects). However, I think Loughborough perhaps still lacks a bit in terms of overall prestige, it's certainly not on a level with Oxbridge and the more well known London unis when it comes to this, but as I said league tables should be treated with caution. Having said that some people have indeed called me crazy when I told them I am seriously considering to turn down an offer drom UCL in favour of Loughborough, but I know that I know better than they do and the L'boro is absolutely top for the subject I applied for.
Your course is much more important than what people consider to be a 'good university'
I know Loughborough is a small town, but its size is perhaps comparable to the town where I did my undergrad. I know some people are worried about moving to a small town for uni, but personally I never felt that it was a constraint at all, on the contrary: You really feel the students' impact on a small university town, something you'd never get in London or Birmingham. That pretty much explains the activities - it really depends on your personal interests, but unis over here cater for everything. Personally I spent much of my free time doing sports, student media and volunteer, but there is plenty of stuff to do with arts and music, too. That was my Uni of course, but I dont expect Loughborough to be different. I found a list of societies
here and the whole Student Union website is useful when it comes to getting a picture.
Also, don't overestimate England's size - it's fairly small. Loughborough is not only close to Birmingham, Nottingham and Leicester, but it's even possible to go to London for a weekend relatively easily if you like. Even from Durham, which is much less central, I have had the oportunity to go to other places every once in a while. However, it is likely that you will have to much work and sports or society commitments and want to see your friends on the weekends so you might only leave the town for special occasions.
Which country are you from, if I may ask?