The green light came as developer Future Generation secured a £62m loan from Maslow Capital for the project.
The six-storey, 533-bed Guilden Park project already has planning permission and is set for completion in time for the start of the 2021 academic year.
The Surrey town is home to four major educational institutions — the University of Surrey, Guildford College, the Academy of Contemporary Music and the University of Law.
Future Generation is a joint venture between developer Southern Grove and Tadhamon Capital.
It will be the company’s third student scheme following similar projects in Sheffield and Colchester which are currently under construction.