A NORTH-EAST MP has sounded a warning over new government figures which show that more students throughout the country are taking out student loans.

Ashok Kumar, MP for Middlesbrough South and East Cleveland, asked for an update on statistics relating to student loans and found that the number is growing rapidly.

In 1990/1991, 180,000 loans were completed, at a total of £69m, but, by 1999/2000, this figure had risen to 723,000 and £1,823m.

The average value of a loan has grown from £390 in 1990 to £2,520 last year. Dr Kumar said: "This shows that student loans are now a very large part of many students' budgets.

"For some students, loans are the only game in town, and while many students are still able to get support from grants, this is means-tested.

"Some students are ending up with a heavy debt burden, and this is why the Government is now reviewing the whole support mechanism.

"I welcome this review, and I hope these figures will illustrate the need for reform.