The university has a £24m a year shortfall for undergraduate funding
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Cambridge University plans to charge its students the controversial full top-up fees for tuition.
The University Council is recommending undergraduates be charged the maximum £3,000 a year from 2006.
Underfunding for undergraduate education at the university is running to at least £24m a year.
A spokesman for the university's students' union said the move would deter students from poorer backgrounds from applying.
Students' Union President Wes Streeting said: "We are disappointed that the university has given such enthusiastic support for a funding system that does not solve its funding crisis and reinforces barriers to widening participation.
"We think the university is shooting itself in the foot."
Bursary system
Cambridge University is the first top-flight university to announce its support for the maximum amount the government will allow it to charge.
It hopes its decision to introduce a bursary system for students which will give them a maximum of £4,000 a year to study at Cambridge will encourage people to apply.
But Mr Streeting said: "A generous bursary scheme will do much to alleviate student hardship but little to remove the significant barrier the anticipation of debt creates for students from the lower socio-economic background."
A spokesman for Cambridge University said a final decision was still some way off.