It used to be the punchline to the joke: What is long, green and takes an evening to drink? However, the student loan has reinvented itself in recent times as the seed capital of choice for aspiring entrepreneurs.

As the credit crunch has closed off or restricted many lending options, student loans have emerged as a means to finance small start-ups. Anyone under 60 entering full-time education for the first time can apply for a debt of £4,950 with no questions asked about where the money is spent.