Britain intends to make it more difficult for students from Europe to claims grants and loans in order to study at universities in the UK.
Data on the money granted shows that funding has doubled in the last three years for students from a variety of European nations.
Figures show 11,600 students from mainland Europe claimed £75 million in 2009/10 for expenses such as rent and books. By 2012/13, some 22,800 awards were made totalling £162m.
Presently, European students studying in the UK are obliged to live in the UK for three years before being eligible for the full range of grants and loans to help with living expenses.
Ministers announced that the requirement will go up to five years before financial assistance can kick in.
In light of the dramatic increase in claims, the Department for Business, Innovation and Skills said: “This is posing an undue burden on the student support budget.”
Concern is rising that many of the loans are not being repaid.
While British students repay through the tax system, no similar structures are set up for students from Europe.
In 2011, 47% of British students had repaid, but only 24% of Europeans had done so.
European students can apply for up to £7,675 in loans for living costs, with an additional £3,354 available in non-repayable grants for those from the poorest families.
Of the £162m claimed by EU students for maintenance, the bulk (£101m) was in loans to be repaid while £61m was in free grants.
The new five-year requirement would bring the UK into line with a number of other countries, including Austria, Belgium, Denmark, Finland, Germany, the Netherlands and Sweden.