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It's definitely a mix. You can't hire just juniors because you need seniors to mentor/train them. You also probably don't want just seniors because as you said, they need the bodies. Add to that the fact that you must expect people to leave, so you have to plan for the future.

If you can manage a balance of both, depending on the individuals in the team it can end up being beneficial as juniors level-up and seniors tackle the higher-level stuff.

Don't forget internships.. it's essentially a hiring pipeline that is only available on students..

It's a lot easier to get hired when you are given a multi-month internship to prove yourself. Instead of having to prove yourself in 5x45min interviews.

(On the other hand students don't have experience to draw on)

Not sure if it’s true, but I heard Facebook did a hiring freeze on junior engineers for a while. Too much technical debt accumulating too fast.