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The new University Centre for Milton Keynes (UCMK) has opened its doors to students for the first time.
Based in the centre of the business district at Silbury Boulevard, the centre offers a wide variety of degree-level courses.
Business leaders described the development as crucial in stopping the area from suffering from "brain drain".
The centre estimates that students studying locally will save an average of £12,000 on living costs.
UCMK is a collaboration between four education providers to offer coordinated higher education provision to meet local needs - the University of Bedfordshire, Milton Keynes College, the Open University and the University of Northampton.
Home-grown talent
It is offering courses in creative industries, business management and marketing, accountancy and finance, computing and information technology, teacher training, social science and psychology, health, nursing and social care, and sport.
Chief executive of Milton Keynes and North Bucks Chamber of Commerce Rita Spada said: "What we are seeing at present is many of our young people going to university in other parts of the UK then choosing to settle there for work.
"It means we are losing our most talented young adults to other cities across Britain, who are benefiting from their education and expertise.
"We are excited that we are now in a position to nurture our own home-grown talent and that's what the University Centre Milton Keynes will do."
Former Cambridge University Fellow, Dr Keith Straughan, who was behind the development of the first MRI body scanner, has been appointed as Dean.
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