British graduates being put off high-level qualifications, report warns Tuesday's report recommended the creation of a state-backed loan scheme - similar to that set up for undergraduate degree courses - to enable more graduates to continue with their studies. It warned of a "credit crisis in postgraduate education" without major reforms. "We are concerned that an increasing number of people who wish to enter postgraduate education are prevented from doing so due to lack of access to finance," it said. The study added: "Fees for postgraduate taught courses are likely to increase - which will exacerbate this situation. Many contributors to this inquiry were concerned about changes in attitudes to debt among those beginning undergraduate study this autumn under the new fees regime. Universities, employers and students repeatedly expressed concern that demand for postgraduate study will fall as students become more reluctant to add to their student debt. The report warned that would-be postgraduate students were facing a "perfect storm" of higher fees and a reluctance by banks to lend money to enable candidates to complete their studies. It said that the impact of these factors could lead to a decline in UK postgraduates, which would have "long-term implications for British competitiveness and leave UK universities even more reliant on international students to maintain the viability of provision." The report said that recent increases in postgraduate students was almost entirely down to foreign students. Since 1999, the numbers of international students have risen by 200 per cent, while home and EU student numbers have only gone up by 18 per cent in the same period, it emerged. The study quoted data published by the European Commission found that England and Wales, alongside Andorra and Kazakhstan, were the only countries in Europe to have less than 10 per cent of students taking postgraduate courses. IN PICTURES: Countries sending the most students to the UK