Charnwood Borough Council has banned students from 50 houses and flats on the Storer Hall site, off Ashby Road.
The order was introduced last year to stop areas of the town becoming deserted outside of term time.
But Gav Stone, president of the National Union of Students at Loughborough, said he is appalled by the decision and hopes to overturn it.
Increasing concern
He said: "A barrister from Shelter is going to look into the potential of a legal challenge, with regards to the whole human rights issue surrounding it, and the restrictions generally on student occupation."
When the ban was discussed in October, councillor Cameron Macleod said it was needed to better manage student housing provision and its impact on the town.
He said: "We understand the increasing concern over the impact of high concentrations of students in parts of Loughborough.
"At the same time we recognise that Loughborough University and College help make Loughborough the vibrant and thriving town it is.
"In short, the presence of the university brings clear cultural and economic benefits, but also brings additional pressures."
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