It claims that of the 400 machines located at university premises, half charge a typical fee of Â£1.50, which adds 15 per cent to a withdrawal of Â£10.
Stuart Bernau, executive director at Nationwide, said: “Students need to be particularly alert when they are withdrawing cash as charges to access their own money quickly add up and hit hard in the pocket of people already facing the challenge of making ends meet while they are studying.
“Across the UK consumers will this year pay Â£250 million to access their money from cash machines, but those charges can be avoided if you seek out a machine that is free.”
His warning comes as students prepare to graduate paying up to Â£70,000 for their degree, according to one recent survey, so every pound saved can help undergraduates clear debt.
Nationwide added that it does not charge fees for cash withdrawals and called for other firms to do the same.