Exclusive: the Treasury is known to be unhappy about the cost of student loans that are never paid back

High-level discussions have been held in Whitehall over controversial proposals to cut university tuition fees from £9,250 to £8,500, sources have told the Guardian.

Officials from No 10, the Treasury and the Department for Education (DfE) are said to have been engaged in “lively” talks about a possible cut to fees but have struggled to thrash out an agreement in time for the chancellor’s spending review.

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