tsturgess@thekmgroup.co.uk

Kent University's vice chancellor has defended its controversial decision to charge students £9,000 a year from 2012, warning a lower fee would mean job losses and other cutbacks.

But Professor Julia Goodfellow insisted a rise in fee waivers and bursaries, especially for students from poorer backgrounds, would reduce the average to around £8,000.

The government had expected most universities to charge £6,000, with only a handful going for the permitted maximum of £9,000.

However, ministers have been surprised by the high number opting for the higher fee, alarmed by a potential massive loan bill.

It has prompted a veiled threat from Business Secretary Vince Cable to cap student numbers.

Prof Goodfellow said the university faced steep cuts in Government grants towards teaching and capital investment and a lower fee risked the university's future.

It already cost between £10,000 and £12,000 to educate a student.

"We would have become a non-sustainable institution if we'd charged £6,000," she told the Gazette in an exclusive interview."

"It became clear to us that in order to sustain the university on this wonderful campus in Canterbury and the campus in Medway, we would have to charge the higher rate."

She added:"A lower fee would mean fewer jobs and not as good an experience for the student at a time when they are going to be demanding more. That's certainly not good for the region."

Asked what she thought about the new system of student and university financing, she replied: "Our democratically-elected government has chosen this system and we will obviously work with it."

She accepted that parents and young people would be worried about the new fees but said more help would be available for students from poorer backgrounds.

Loans would only be repayable when the graduate earned more than £21,500, and at nine per cent of income above that level.

It was hard to calculate how the fee would affect student applications, but she accepted there could be a small reduction.

However, Kent University was popular and she did not expect that to change.

All the evidence showed that despite the current economic situation, graduates still had a better chance of a good job with higher pay than young people without a degree.

She had this message for anxious families: "Come and talk to us. See what the reality is. Don't automatically write it off."

The university has an annual turnover of £170m and employs nearly 3,000 people.

Its case for higher fees will be considered by the Office for Fair Access (OFFA), with a decision due by mid-July.