Being a student in university city (7)
I believe the answer is:
reading
I believe this is a double definition.
'being a student' is the first definition.
('read' can mean studying a subject at university)
'university city' is the second definition.
(large UK town containing a university)
'in' acts as a link.
(Other definitions for reading that I've seen before include "perusal of books" , "Passage" , "southern English town" , "English university place" , "Understanding the written word" .)