Student in bed none fancy dignified (8)
I believe the answer is:
ennobled
'dignified' is the definition.
('ennoble' can be a synonym of 'dignify')
'student in bed none fancy' is the wordplay.
'student' becomes 'l' (as in L-plates for learner drivers).
'in' is an insertion indicator.
'fancy' indicates an anagram.
'bed'+'none'='bednone'
'bednone' anagrammed gives 'ennobed'.
'l' placed within 'ennobed' is 'ENNOBLED'.
(Other definitions for ennobled that I've seen before include "Got up to peer" , "Elevated to the peerage" , "Given peerage" , "Dignified" , "Given a title" .)