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Banks should show responsibility when lending to students, according to HSBC.

Money lenders should be sure not to lend more to students than they can afford to pay back, the global giant said.

James Thorpe, a spokesperson for HSBC said that like HSBC would try to help their students manage any financial difficulties.

Mr Thorpe explained: "The logic to offering credit to students is that we appreciate that while they are studying they will need access to cash with flexibility.

"Overdrafts are one way of doing that. We are only lending students affordable amounts or what we believe students will be able to afford once they have graduated."

According to the Student Loans Company, the total amount lent to higher education students during 2006 - 07 was £2,954,1 million.

Of this £386,5 million related to tuition fee loans.

The balance of outstanding loans (including loans not yet due for repayment) stands at £18,116,3 million for the 2006-07 financial year.

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