University Minister Jo Johnson has said that students from the European Union that are starting university courses in the UK this academic year will have their student loans honoured.
In addition, those EU students already in higher education will continue to receive financial support.
Universities have been seeking clarity and assurances since the Brexit vote.
The Student Loans Company has also released a statement saying that those EU students who are already studying in the UK will not face any changes to financial support, including loans to cover tuition costs.
Despite the clarification over current students there still remains uncertainty over how EU students will be effected for those starting courses in autumn 2017.
As a result, there remains a significant amount of uncertainty surrounding higher education due to the Brexit decision. In particular universities are concerned about the future of EU research funding, with the UK reportedly one of the largest beneficiaries of the scheme.