Students held protests on campuses across Britain yesterday to expose secretive government plans to let privateers squeeze profits from debt-laden graduates.

Actions organised by the Student Assembly Against Austerity to sound the alarm over the sell-off of student loan debt took place at over 25 universities and colleges.

Students were warned that tuition fees could rise after they graduate if privateers are allowed to raise interest rates.

Assembly spokesman Aaron Kiely told the Star: "We don't want students lumped with potentially £10,000 more worth of debt when they are in so much debt already.

"If interest rates are raised, which private companies are likely to do, that would mean a retrospective hike in tuition fees."

Students at Sheffield University occupied a branch of the Santander bank in their students' union building.

Dozens of activists attached by ball and chains caused a scene at the University of London as they shuffled through thronging crowds.

And students at the University of Arts London (UAL) slung signs around their necks showing how much debt they have already wracked up.

UAL Students Union president Shelly Asquith said it was important to start getting students "aware and angry" about the sell-off.

"We're getting students riled up about it really because there's been a lag in the student movement fighting back," she said.

A report by Rothschild bank for the government outlining plans to flog £40 billion of debt and allow interest rates to be doubled was exposed in June.

Tory Universities Minister David Willetts has since claimed in a letter to the National Union of Students that interests rates could not be raised.

But that was dismissed by students who pointed out politicians promised not to treble tuition fees or scrap the education maintenance allowance.

Students at other universities hung huge banners around campus, handed out leaflets and got the message across through megaphones.

Nottingham physics student Duncan Davis said: "Most people don't know that it's going on and when you tell them they are really outraged about it."