A ¡°Day of Action¡± is planned for 20 November and will feature hundreds of students and graduates, the party says.

Caroline Lucas, the Green MP for Brighton Pavilion, said that privatisation would lead towards ¡°American-style education system, where studying for a degree can mean being in debt for life¡±.

¡°It¡¯s clearly unfair on students, but also on taxpayers who will foot the bill when the government has to pay penalty fees resulting from students being unable to repay,¡± she added in a statement.

Protests are planned for at least five campuses and will include marches and occupations.

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In June this year Danny Alexander, chief secretary to the Treasury, said that the government such as the student loan book.

Fears have been raised that a private owner of the loan book would be able to raise interest rates.

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However, a spokesman for the Department of Business, Innovation and Skills said: ¡°Two years ago, the department categorically ruled out changing the terms of interest rates charged to graduates with existing student loans taken out before 2012.

¡°Borrowers¡¯ terms and conditions are set down in regulations, and will not be changed as part of any sale.¡±

He added that there had been no definite decision on whether or when to sell the loan book.

david.matthews@tsleducation.com