MSPs vote to end students' graduation fee

Published on Thursday 20 December 2007 19:43

PLANS to ditch the fee paid by students after graduation were backed by MSPs yesterday, despite opposition from a rare Labour-Conservative alliance.

Ministers argued that scrapping the 2,289 charge would help to relieve the financial pressures facing graduates.

Ending the graduate endowment was a key SNP manifesto pledge, but the plan suffered a setback last week when Holyrood's education committee voted against the move in a report.

Yesterday's parliamentary vote to ditch the graduate endowment – which saw MSPs back by 65-60 the general principles of a bill to scrap the fee – was welcomed by student leaders and hailed as "good news for students" by Fiona Hyslop, the education secretary.

James Alexander, president of the National Union of Students Scotland, said: "This is the first step in the right direction.

"We believe it is very important that barriers to education are removed, and the graduate endowment did act as that, especially in the poorest areas.

"But the graduate endowment does nothing to tackle student hardship, and that's why more needs to be done," he said.

Following the vote, Ms Hyslop said the SNP-led government was committed to removing the burden of student debt.

She added: "We believe debt, and the fear of debt, acts as a barrier that prevents some youngsters from entering university.

"The removal of the unfair and inefficient graduate endowment fee is an important first step in our plans, and I am delighted that parliament has approved it.

"Abolishing the fee is not just good news for students and graduates – around 50,000 will benefit immediately – but is also in the best interests of the public purse, as taxpayers lose around a third of all fee income collected."

Student presidents from around the country previously wrote to MSPs urging them to back abolition of the endowment.

MSPs still have to vote through the bill at stage three next year, before the graduate endowment can be formally scrapped.

Labour's Richard Baker, a member of Holyrood's education committee, said yesterday's vote was "political posturing".

He added: "Abolishing the graduate endowment will not give one more penny to any of Scotland's students.

"Labour is disappointed parliament has not voted to endorse our proposals for improved student bursaries, but we will continue to press this issue."

The bill had the backing of the SNP, Lib Dems, Greens and the independent Margo MacDonald, which proved enough to defeat the Labour-Tory alliance.

COST OF A DEGREE

THE graduate endowment is a fixed charge graduates are expected to pay once they finish their degree.

The amount paid is set at the start of a degree course. Students who began their course in the 2006-7 academic year will be due to pay 2,289. The fees were introduced for EU students in Scotland in 2001 and the first students started paying in 2005.

The cash funds bursaries and support for students.