The number of undergraduates who have signed up for degrees starting this autumn is up 1.8% on last year.

This includes a 5% rise among those aged under 21.

The OU expects the final enrolment figure to be 156,000, a rise of 2.2% on 2003. This represents the highest number in its 35-year history.

Pro-vice chancellor Professor David Vincent attributed the increase to the OU's lower fees and part-time courses.

'Learn and work'

He said: "The Open University is increasing in popularity as the advantages it offers its students are more widely recognised.

"Open University students can earn while they learn and fit their university around their work and personal commitments."

Students at full-time universities in England currently pay �1,125 a year for undergraduate courses.

The OU, which makes use of remote learning-technology, usually allows degrees to be taken part-time over six years, at an average overall cost of �4,100.

Prof Vincent added: "While many people perceive Open University students to be older students, the number of young students who are choosing to study with us continues to increase.

"Younger students are finding that studying with us is financially, socially and intellectually rewarding."

The latest figures also show the OU supported 21,648 students in financing their studies last year.

In 2003-4, this is expected to rise to 24,000, or 15% of undergraduates.