There was a time when being a student was strictly limited to those who came from privileged backgrounds, but with the introduction of student loans and top up fees, further education became more and more accessible.

Now recent reports are suggesting that the time students have to repay their loans is to be cut from five years to two years meaning that many could be crippled by debts delaying students getting onto the property ladder.

This new measure being introduced by the government has been condemned by certain student bodies for being short sighted, getting the money back from student loans may offer a short term windfall but a lack of long term investments i.e. students investing in the property market.

Martin Lewis, from the advice website moneysavingexpert.com, speaking to the Independent newspaper, said the move was likely to hit poorer students.

He said: "While a two-year repayment holiday is a good addition, it is no way as good as a five-year break, which allows students to buy a property or sort out their other debts.

"It will be disappointing for many students, but it is interesting that yet again, the Government seems to be chipping away at [the student loan system] piece by piece."

University numbers rising

The number of applications to universities is on the rise according to the Independent, it has been suggested that this is down to the recession.

Based on these figures Lord Mandleson said that that the Government would fund financial support for 10,000 extra students, including grants and tuition fee loans, but universities will get no extra cash for teaching.

He said the additional places would only be for full-time undergraduate entrants to science, technology, engineering and math's courses, as they would give young people the skills they needed for the "jobs of the future".

Phil Willis, the Liberal Democrat chairman of the Commons universities committee, acknowledged that the extra places were needed but voiced concern that they would not be backed with additional teaching grants.

He said: "Universities are struggling to meet the current demands and courses in science subjects tend to be more expensive than those in other subjects."

Science focus

Lord Mandelson was also accused of focusing too much on science degrees.

Diana Warwick, head of Universities UK, said: "We understand the thinking behind tying the student support to the science, technology, engineering and math's agenda. However, we would be concerned if this were, in future, to have a negative impact on areas such as social sciences, arts and humanities."

The powers that be will be arguing forever about where funding should be spent and if more university places are really what Britain needs in this time of recession.

Yet the sad truth for many students is that they will be entering a job market that is flooded with graduates and there is just not enough jobs for everyone.

With the loan break cut down to two years there is more pressure than ever on students to get a well paid job so they can afford the loan repayments.