AbstractDuring the 1980s, a political consensus developed concerning the need to increase participation in higher education (Walker and Wright, 1990). How to finance this increase, however, was a matter of contention. While successive Conservative governments demonstrated a commitment to increasing the number of students, this aim was subordinate to their central concern of controlling public expenditure, which meant they were not prepared to meet the cost of expansion totally from the public purse. As a consequence, alternative ways of financing students were introduced which, as this paper will demonstrate, have led to a higher education system subsidized by student debt.