Students could avoid university fees if they turn down government loans

Students could escape university tuition fees in exchange for waiving their right to government loans under Whitehall plans.

Ministers are considering "no-fee degrees" as a potential reform to the tuition fees system, which will be reviewed this year. The courses would be aimed at students who want to save money by living at home.

The Department for Business, Innovation and Skills, which oversees university policy, said discussion of the proposal was "speculative", according to the BBC.

University leaders expressed concerns that the quality of education could be compromised by "cut price" degrees. The National Union of Students said the plan could be worth piloting but warned against cutting grants and loans.

Tuition fees are to rise to £3,290 from September next year but government grants and loans have been frozen.

Many vice-chancellors want the cap on fees to be raised to charge up to £7,000 per year.