Student fees are paid by students and are a student's debt. The loan taken out by students to pay their fees, should be paid directly to the student, who can then pay their fees directly to their university. This would allow students the ability to make any necessary deductions.
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Students are consumers and have rights. By the Government paying fees directly to universities, students are unable to hold universities to account. If a student is in arrears of more than a term, the university could make an application for fees to be paid directly to the university. This is already done with housing benefit, which is paid to tenants who then pay their landlord.