STUDENTS who take fast-track degrees achieve higher grades and end up £20,000 better off than people who opt for traditional three-year courses.

These are among the key findings of a new report, which looks at the experiences of Staffordshire University undergraduates who have been piloting two-year degrees.

Despite concerns these courses would dumb down higher education, researchers found students are more committed in their first year at university and study in similar depth.

They gain an average of two-thirds of a degree classification higher than other students. And yet they graduate owing just two-thirds of the tuition fees.

But fast-track degrees could prove short-lived, because they are too expensive to run. Universities are investing three years' worth of teaching costs and resources, yet receiving barely more than two years of funding.

The report says unless they are allowed to charge at least 25 per cent more fees for these courses, they will not be financially viable.

It also suggests marketing them as a "premier" route to a degree, which shows employers that a student can cope with extra demands.

Steve Wyn-Williams, director for academic development at Staffordshire University, today welcomed the findings.

He said: "We take great pride in the fact Staffordshire University is one of only a few institutions in the country to successfully deliver and grow our two-year degrees.

"Recruitment to our fast-track awards has grown significantly over the last four years."

The university has more than 200 students on the courses, which are offered in law, finance and accounting, business management, geography, English, motor sport technology and computing science.

For the first two semesters, students follow the same programme as three-year undergraduates, sitting alongside them in lectures.

But when others break up for summer holidays, fast-trackers begin their second year. This extra semester includes a summer school and distance learning.

The report says students are not simply cramming for degrees, but do spend less time socialising and more time on independent study.

The evaluation was done by Staffordshire University's institute for education policy research and commissioned by the Higher Education Funding Council for England.

It covered all seven universities involved in the pilot.

Government ministers have trumpeted two-year degrees as part of the future of higher education and have claimed they help attract more disadvantaged students.

But it has emerged many fast-track students would have taken a degree anyway. The only significant difference is the courses attract more mature learners, including those switching careers.

The report estimates the option saves them £20,000 – the equivalent of one year less of the £3,225-a-year fees and one year's extra earnings.

Roger Grimshaw, from Cotes Heath, near Eccleshall, recently gained a fast-track law degree at Staffordshire University.

The 45-year-old former businessman, who now manages a motor racing team, was drawn to the two-year course because he could get it "done and dusted".

He said: "I didn't find the workload too bad. I was used to a 40-hour week and treated university as a job. Mature students would see a 12-week summer holiday as a waste. Cost was also an issue.

"I came out of it with a 2:1 degree – without doubt, it's better than I would have done otherwise. I put in the effort."