LECTURERS and students gave George Osborne's new government-funded postgraduate loans a lukewarm welcome yesterday but many warned the policy would only lead to further debt.

In his Autumn Statement the Chancellor announced new loans of up to £10,000 would be made available to under-30s studying for masters degrees.

But lecturers' union UCU did not seem convinced that the measure would be of real benefit to students.

"Encouraging people to accrue more debt is not the best way to attract the best and brightest into further study," said UCU general secretary Sally Hunt.

"If we really want to expand the number of UK postgraduates, government must consider even more radical ideas such as restoring proper grants or writing off part of a student's undergraduate debt when they complete a postgraduate course."

The loans will be available from the start of the next academic year and repayable once the borrower is on a salary of £21,000 or above.

The National Union of Students (NUS) called the policy a "step in the right direction."

NUS vice-president Megan Dunn said: "Many postgraduates are currently funding their study through potentially disastrous measures such as credit cards, overdrafts and personal loans."

Many took to social media to voice their doubts over the new measures.

Leeds economics Professor David Spencer wrote on Twitter: "#AutumnStatement Student loans for postgraduate study. More debt. Great!"