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Students from the EU could be loaned more than £13,000 a year for tuition fees by the UK after Brexit.
Officials are understood to be in discussions which could lead to the offer to European students at British universities to stop their numbers plunging.
Currently, they pay the same £9,250 fees as home students and have access to the same taxpayer-funded loans, which are repaid voluntarily.
But this is expected to end if there is a so-called ‘hard’ Brexit, meaning EU students would be treated like international students who are charged more and have to pay upfront each term.
The average cost for an international student is £13,394 a year, rising to £15,034 for laboratory subjects and £24,169 for clinical disciplines.
Sources said the Government is examining whether it would be feasible to provide loans to cover these higher fees to maintain the number of EU students at UK universities.
Experts have raised concerns that this could prove costly because it can be difficult to force repayments when foreign students return home.
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