National Union of Students president Wes Streeting said he welcomes the government's "creative thinking" that could give graduates opportunities to "gain valuable new skills".

BBC: Graduates to get gap-year money

"There is a real danger that this review will pave the way for higher fees and a market in prices that would see poorer students priced out of more prestigious universities and other students and universities consigned to the 'bargain basement', " said NUS president, Wes Streeting.

BBC: Student funding