I have worked at home > office > bigger office > garage and now back home again. It works really well as a student, as I can work late into the night, without worrying about having to drive home, etc.
I generally meet clients at their workplace, or the local high end pub. Hotels are also useful, thankfully people respect design skill over flash offices most of the time.
@Sinead - contacts are key, pester them within reason, offer referral bonuses off future work, I have only gotten four clients who wasn't a time waster by email! (which I know is shocking)!