Ministers are considering "no-fee degrees" for students, which would allow students to be exempt from paying tuition fees, on the basis they do not apply for loans or grants.

This means that many students opting in for the plan will be forced to live at home with their parents and go to universities near where they live. 

This plan would allow students to save around £10000, but would mean they would have to give up government financial aid of up to £25000 over a 3 year degree. 

With figures suggesting that by 2016, with tuition fees possibly rising to £5000, the average student will be £26400 in debt, this plan could be a welcome idea. 

Ministers will review tuition fees this year. 

The cost of the scheme to the Treasury could be £90 million. 

Professor Paul Wellings, chair-elect of 1994 Group of Research Intensve Universities, has said that they "will be cautious of any new proposals that result in cut-price, lower-quality degrees of a lower value to students".