Men were more likely to be involved than women, and the sex work ranged from prostitution and escorting to stripping and internet work, the Student Sex Work Project report said.
One in 20 students had worked in the sex industry while they pursued a degree, researchers from Wales- based Swansea University's Centre for Criminal Justice and Criminology who carried out the online study said.
"And we have to keep in mind that not all students engaged in the industry are safe or feel safe. It is vital now that universities arm themselves with knowledge to better understand student sex work issues and that university services are able to support students where support is needed."
The recent study involved 6,750 students, of which 5 per cent of men and 3.5 per cent of women said they had worked in the sex industry, while nearly 22 per cent overall said they had considered doing so.
Money was not the only motive, as three-fifths thought they would enjoy it, 54 per cent said they were curious and 44 per cent cited sexual pleasure as their motivation.
However, up to a quarter reported that they had found it difficult to leave the industry, while a further quarter did not feel safe doing sex work, The Guardian reported.
The report said the number of those accessing counselling rose to 21 per cent for student sex workers - but universities often had no specific policy to deal with the issue.
"At the moment, students feel so stigmatised and judged that they are afraid or at least very reluctant to disclose their occupations to staff and services at universities that could help them. Stereotyping is also a problem."
