The majority of final year university students believe that borrowing money for their higher education is a good investment, according to a study commissioned by Universities UK.

The survey also found that two thirds of the students nearing the end of their studies feel that debt is a normal part of life.

Universities UK

Diana Warwick, chief executive for Universities UK, said: "At a time when the government is finalising its 10-year strategy paper for higher education, these early findings are a strong signal that changes in student funding policies are required to achieve a socially diverse student population.

"The findings also support the Universities UK view that more information on student financial support is required, and that this needs to be targeted at under-represented groups. This information also needs to be accessible, transparent and available at an early stage.

"If the government is serious about its aim of having 'potential, not parentage', and 'merit, not money' as the determining factor for entry to higher education, it must accept that current funding policies will not achieve this. We look forward to its recognition of this in the 10-year strategy paper."

Forum Response: NATFHE

Paul Mackney, general secretary for NATFHE, said: "This is powerful stuff. It shatters any government claim that more working class students can be attracted into higher education while the prospects of increased fees and further student debt haunt government funding ideas.

"It's time to abandon the idea of increased fees: 'top-up', 'up-front' or even deferred ones. All of these deter poorer students. The only chance of reaching 50 per cent participation in higher education by 2010 - a modest target - is to look afresh at funding our universities from progressive taxation.

"Tony Blair must tell it like it is: to maintain the excellence of UK universities, we must reprioritise government spending or wealthier tax payers should pay a little more."

Forum Response: Universities Council for the Education of Teachers

Mary Russell, secretary to UCET, told ePolitix.com: "It is essential that we have teachers from all sectors of society. If some sectors feel that higher education is closed to them for financial reasons including fear of debt, that will mean that those going into higher education, on to teacher education and training and into teaching, will not be fully representative of the Society whose children they are teaching. This is already a matter for concern and everything possible needs to be done to improve the situation."