It’s a record-breaking year for A- level students, with more than ever landing a place at university. And of the more than half a million signing up for a degree, the number from disadvantaged backgrounds is up by eight per cent, according to admissions body UCAS.

It seems the hike in tuition fees – now £9,000 a year – has not put off the poorest kids and some national newspapers went all warm and fuzzy, describing it as ‘the end of the class divide’.

Hmm, or maybe not, according to Will Hutton, Principal of Hertford College here at Oxford University.

Writing in Sunday’s Observer, the top economist and political advisor claims the gap isn’t narrowing, because youngsters from wealthy homes and private schools are still taking the lion’s share of places at the best universities.

Whoever’s right, there’s no arguing that it’s a massive expense.

Three years at uni, including tuition fees of £27,000, another £3,000 to £4,000 a year to pay for your accommodation plus living costs, adds up to a whopping £40,000 to £60,000 by the time a degree course is finished.

While some youngsters aren’t bothered by the idea of having that amount of debt hanging around their neck, others feel there’s simply no option if they’re going to compete in the jobs market.

And when you’re 18, repayment is something far-off in the future and so distant, it doesn’t feel real.

It’s true that pay-back doesn’t kick-in until earnings reach £21,000 a year and even then, it’s a small amount per month, deducted automatically through the tax system.

After 30 years, even if the debt is not paid back in full, it is written off. In fact, the government admitted in April that it expects 60 per cent of student loans will not be repaid.

The first hurdle for any would-be student (and their parents) is applying for a student loan, which involves pages and pages of detailed questions about household income, most of which mean trawling through dog-eared bank and income tax statements from years gone by.

Once that’s been sorted, they’ll tell you how much loan has been awarded and whether the student is eligible for any grants – it’s done on household income, as is the loan, which is why they want to know so much about parental finances.

Grants do not have to be paid back and the student loans people will work out if the student fits the criteria.

The tuition fees part of the loan is paid directly to the uni or college but the rest goes to the student.

None of it needs to be paid back until income goes over £21,000 a year and if it drops below that, repayments are put on hold.

Interest is charged and is linked to inflation rate in March of the current year – 2.5 per cent now – and changes depending on lots of variables, so can be complicated.

The good news is, there’s plenty of advice and information out there, including at gov.uk/student-finance, moneyadviceservice.org.uk and UCAS www.ucas.com

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