Many students rely on loans to get through there years at university but the recent credit crunch could have big consequences.

David Malcolm from the national union of students said "They might be under threat if banks want to reduce the exposure to risk, they are much bigger amounts of money and there is more opportunity to default on that”.

Since news of the credit crunch broke many banks, building societies and brokers have been performing more checks on those wishing to take out loans. With fear growing many can not afford repayments after the loan has been finalised these organisations have little choice but to be vigilant.

Mr Malcolm also remarked services such as overdrafts are unlikely to be affected by the harsher conditions imposed by banks.

This comes after news of American firm Sallie Mae pulling out of the student loan market.  Sallie Mae provided financial services for those learning in Britain.