Loans could be offered to EU students as part of the Brexit deal in an attempt to encourage them to continue studying at British universities.
Discussions between the Department for Education, Universities UK and the Student Loans Company (SLC) are understood to have taken place on the creation of government-provided “commercial-style loans” for overseas students.
Once Britain leaves the EU, students from the bloc will lose access to SLC funding and be charged the same full fees as non-EU students are at present, which may lead to a decline in numbers.
Making loans part of potential free trade agreements with foreign governments is seen as one way to address this, according to Times Higher Education.
One source said a solution such as this was