Theresa May is set to announce that tuition fees will be frozen in an overhaul of student funding.
As the Conservative party conference in Manchester opens, the Prime Minister will pledge to “look again” at student finance.
Tuition fees are to be frozen at the current level of £9,250 until 2019, rather than increase with inflation by £250.
Under the plans, the amount graduates can earn before making repayments will also rise from £21,000 to £25,000 under the plans.
The figure will then increase in line with earnings after next year, with the Tories saying the package will produce a saving of £360 in 2018/19 for graduates earning at least £25,000.
Speaking to the Sun on Sunday ahead of the start of the party’s conference, she said: "Too many young people fear they are going to be worse off than their parents.
"We have listened to those concerns and we are going to act to offer a fairer deal for students and young people."
And in a bid to help young people get on the housing ladder Chancellor Philip Hammond is announcing a £10 billion expansion of the Help to Buy: Equity Loan scheme in order to aid 135,000 new purchasers.
Mrs May said: "Today I announce the next steps in that mission - with more help for students and graduates with tuition fees and billions of pounds of investment that will help thousands more people get a home of their own.
"This country has world-class universities - and I am proud that more young people from disadvantaged backgrounds are attending them than ever.
"But we know that the cost of higher education is a worry, which is why we are pledging to help students with an immediate freeze in maximum fee levels and by increasing the amount graduates can earn before they start paying their fees back, amounting to a saving of £360 a year, while the Government looks again at the question of funding and student finance."
Mr Hammond said: "Young people are worried that life will be harder for them than it was for their parents - owning a home is a key part of that. This Government understands that for many people finding a deposit is still a very big hurdle.
"That's why we will invest an extra £10 billion in our Help to Buy: Equity Loan scheme to help a whole new generation of young people, across the UK, with the upfront costs of home ownership.
"We're able to do this because of our balanced approach to the economy - dealing with our debt, while still investing in the future."
