The University of Warwick is to offer scholarships following concern that the abolition of maintenance grants has deterred students from poorer backgrounds.
Scholarships would aid the university to broaden its social mix in the event of differential fees.
From next October at least 25 full-time students a year will receive up to Pounds 2,000 annually funded by alumni contributions. "We thought Pounds 2,000 would be a sum that looked close to the old grant," said Jonathan Nicholls, incoming registrar. This could be topped up by money from the Student Loans Company.
Students would have their fees paid by their local education authorities: "We are looking for students from households that are well below the threshold income for tuition fees," Dr Nicholls said.
"If universities were allowed to generate income through differential fees, the money would be used to establish scholarship schemes - it would be self-preservation," he added.