Graduates could face tougher conditions on their student loans because of uncertainty over long-term debt repayments, a report says.
The Higher Education Policy Institute says the potential impact of low loan repayments decades ahead is beginning to affect universities' budgets now.
The government says the Treasury will share any extra costs with the business department over a 30-year period.
And this will protect other parts of its budget from unexpected pressures.
The introduction of higher £9,000 tuition fees in 2012 - funded up-front by government-backed loans - led to concern about the sustainability of the funding system in the longer term.
The higher the fees, the bigger the loans and therefore the larger the up-front payment by the government.
The government says the Treasury will share any extra costs with the business department over a 30-year period.
And this will protect other parts of its budget from unexpected pressures.
The introduction of higher £9,000 tuition fees in 2012 - funded up-front by government-backed loans - led to concern about the sustainability of the funding system in the longer term.
The higher the fees, the bigger the loans and therefore the larger the up-front payment by the government.
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