David Rendel, the Liberal Democrat further and higher education spokesperson, has demanded that university tuition fees should be scrapped and grants restored in their place.

"We have seen student debt triple in higher education. Recent research has shown that since fees and loans were introduced the government subsidy for the richest students has fallen by two per cent, but for the poorest students it has dropped by 35 per cent. Students can now expect to graduate with an average debt of £12,000. The threat of debt is deterring students from applying to university."

He added: "Following the abolition of tuition fees and the restoration of grants in Scotland, the number of Scottish students applying to Scottish universities has gone up, while the number of Scottish students applying to other UK universities has gone down. The government's manifesto target of 50 per cent of young people entering higher education by 2010 is simply not compatible with the present system of student finance."

Forum Response: Universities UK

Diana Warwick, chief executive of Universities UK told ePolitix.com: "Vice-chancellors are increasingly concerned about student support. They are worried that there is a growing number of students facing real hardship. The real concern is living costs rather than tuition fees. Universities UK has called for an urgent rethink on student support to promote the widening participation agenda.

"Universities UK supports the principle that students or parents, who can afford to, should make a contribution towards the costs of their higher education. Tuition fees have unhelpfully become shorthand for the whole debate about student finance, leading to misunderstandings about what students pay. But only 50 per cent of students will pay anything at all towards these fees. It is also vital to increase funding for universities - we cannot rob Peter to pay Paul. Both universities and their students need extra funds.

"Universities UK, in its Spending Review 2002 submission, will be calling on the government to swap the present bursary schemes for a single, uncomplicated system of student living support awards for people from low-income families drawn widely enough to ensure that finance is no longer a barrier to participation in higher education. Universities, schools and government must work together to raise aspiration and attainment amongst young people to equip more of them for higher education. Universities UK's Spending Review 2002 submission will also call for increased funding for universities to ensure UK higher education retains its world class status."

Forum Response: Association of Teachers and Lecturers

Peter Smith, general secretary of the Association of Teachers and Lecturers told ePolitix.com: "We are obviously in sympathy with the Liberal Democrat position. We feel the government should be investing in higher education and not taxing students. The level of indebtedness is unacceptable.

"The threat of debt is a potential deterrent to graduates entering low paid professions such as teaching, and this is not going to resolve the teaching recruitment crisis."