By Caroline Gammell Published: 8:00AM GMT twenty-two February 2010
Oxford University and the Office for Fair Access (Offa) have both pronounced the stream systems of appropriation should be changed.
The large shortfall in the higher preparation bill equates to thousands of students from "higher" income family groups might finish up out of pocket.
Lord Mandelson: bad should not be labelled out of university Students call for connoisseur taxation in place of fee fees Middle-class relatives should compensate some-more to send young kids to university, says Lord Patten A-level results: investigate abroad Top universities reject Gordon Browns additional places planOffa has referred to that bursaries from universities should regularly be equates to tested, whilst Oxford suggested that Government loans should foster the lowest incomes.
Both have put brazen submissions to Lord Browne of Madingley, the former BP executive, who is heading an eccentric examination in to fees, loans and grants, systematic by the Government last year.
His recommendations are not approaching to be published until after the ubiquitous election.
All students are now entitled to a state loan at a low seductiveness rate to compensate for the annual �3,290 fee fees.
Universities are ostensible to have use of a little of the income generated by these additional fees to assistance poorer students tarry their tertiary education.
However, a little universities such as Cambridge, Oxford and Bristol set the club utterly high.
They now suggest monetary await for vital costs for students with a family income of up to �50,000 - stand in the �25,000 supervision grant.
In Essex, a little students get assistance if they come from homes earning �60,000. Offa pronounced these bursaries should be destined at low income families.
"Some institutions now suggest bursaries to students on higher incomes, or suggest bursaries or scholarships that are not equates to tested.
"Efficiencies might be found by targeting bursaries improved at the majority disadvantaged students."
In the submissions to the supervision review, Oxford pronounced that the standing quo for Government appropriation was "unsustainable".
"Costs to the Treasury have significantly increased, due to a inexhaustible complement of tyro support.
"The appropriation is expensive, whilst tyro await is not effectively targeted at those with the biggest monetary need."
A source at Oxford said: "The people that need it majority are not indispensably stealing the funding.
"The Government might need to see again at the loan scheme."
An Oxford University mouthpiece said: "Oxford has a organisation joining that each tyro judged to have the right capability for a place should be means to come and finish their march in any case of monetary reasons, and this will not change.
"The standing quo is unsustainable but the supervision isnt even progressing the standing quo.
"Recent cuts and approaching destiny cuts are creation the underfunding complaint worse."
In January, Lord Mandelson, the initial cabinet member of state, voiced �950m of cuts to higher education.
Earlier this month, the think tank Policy Exchange pronounced fee fees should climb to some-more than �5,000-a-year for all undergraduates.
It endorsed stealing the "wealthiest" students from the tyro loans intrigue and forcing them to steal income at a higher rate on interest.
It said: "Many top and center income family groups now compensate large sums of income to teach their young kids secretly at nursery, first or delegate propagandize level, and mostly all three.
"Yet when they arrive at university they design this piece of their children"s preparation - from that they will good the majority explicit
financial good - to be "free" or heavily subsidised by the state. This does not have sense."
Another offer is that students could be charged as most as �20,000 to investigate grade subjects that lead without delay to the most appropriate paid jobs, such as law and medicine.
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