The government has not ruled out implementing its proposals on student finance in Northern Ireland, the Employment and Learning Minister has said.

Jane Kennedy denied telling student leaders the changes envisaged in Wednesday's White Paper would not be introduced under direct rule.

The government said students would have to pay tuition fees of up to �3,000 a year under new plans.

Universities are being allowed to increase tuition fees from the present level of �1,100 a year, but students will not have to pay until after they graduate.

Higher Education Review

Higher limit for tuition fees, up to �3,000 Universities set own fees Scrapping of up-front fees Re-payment after graduation 'Access regulator' to ensure wider intake Return of maintenance grants

For the first time, different universities will be able to charge different fees up to �3,000.

The changes were announced by Education Secretary Charles Clarke in the Commons.

The plans are part of a wide-ranging and long-awaited shake-up of higher education in England.

Suspension

Mrs Kennedy said she was disappointed that the Northern Ireland student movement had made the claim without checking with her.

"I could not, therefore, and did not give any commitment in relation to the timing of decisions in respect of student finance," she said.

"I was aware of the high priority given by the executive to matters of student finance before suspension and that it had put in place arrangements for Northern Ireland which were different from the rest of the United Kingdom."

Jane Kennedy: Disappointed in student leaders

The present situation means that a pupil from one Northern Ireland school wishing to study in Belfast would pay �3,300 for a three year course, while a student from the same school would pay �9,000 for three years at an English university.

Student convenor Ben Archibald said the movement had convinced the Northern Ireland Office not to impose greater levels of debt on students.

Student leaders said Mrs Kennedy had assured them the package of proposals for English universities would not be implemented until devolution was restored.

However, the minister said this was not the case.

Rate of completion

University of Ulster Vice Chancellor Gerry McKenna said there was a danger of creating a "two tier, socially divisive higher education system in the UK".

Speaking at the University of Ulster' winter graduation he said: "Regrettably, the White Paper fails to address two major and related obstacles towards an equitable higher education system: student maintenance and fear of debt.

"The reality is that fear of debt, especially here in Northern Ireland, deters many talented people from the disadvantaged social groups from entering higher education.

"It also significantly affects the rate of completion amongst those who do take on the burden of debt."

Queen's University Vice Chancellor Sir George Bain welcomed the government's proposals on the future of higher education in England.

He said it was critically important that Northern Ireland followed suit.

"Access to quality is a core aspect of Queen's' mission. Northern Ireland students from poorer backgrounds would be seriously disadvantaged if they did not have the option of attending a world-class research and teaching university in their home region."

Northern Ireland's economic development depended on it, he said.

Northern Ireland's two universities are funded through the English higher education funding council.