Gemma Fraser: Are the days of free degrees numbered?

LET it never be said that Scotland is not a proud nation.

And undoubtedly at the forefront of its long list of achievements and accolades is its world-class and world-renowned education system.

Scotland has always been proud of having its own distinct curriculum, different exam system and longer degree courses which separate it from the rest of the UK. And above all, Scotland has in recent years taken great pride in its ability to provide free education to all - even at university level.

But with a review of student funding in England published today, combined with growing financial pressures and funding cuts across the sector, the issue of how much longer the current system can be maintained has once again reared its ugly head.

The mere suggestion of students again paying tuition fees in Scotland is met with immediate disdain but the introduction of "graduate contributions" is being talked about more and more as a lesser evil.

With May 5 next year firmly in the minds of all politicians, they are understandably wary of putting their cards on the table. But so far all have ruled out the introduction of "up-front" tuition fees - including Scottish education secretary Michael Russell.

But politicians are being careful not to rule out the possibility of asking students to contribute after they have graduated and many are coming up with creative methods of doing so.

The Tories, for example, are looking towards Australia where students pay back deferred fees and living costs.

It would involve students paying back variable fees when they reach a certain salary threshold - though they have not decided upon an appropriate amount as yet.

Liz Smith, education spokeswoman for the Scottish Conservatives, said: "We are very much against up-front tuition fees as that would be a disincentive for some people to go to university.

"But the current status is not tenable as we simply haven't got enough money in the system.

"Our proposal is for a deferred fee graduate contribution.

"Once someone has graduated, they pay back at a time that's convenient and affordable to them.

"Once they get to a certain threshold of income they are liable but if they don't reach that threshold they have a longer time to pay it back."

Following the publication of today's report on university funding in England and Wales by former BP boss Lord Browne, the Scottish Government will publish a green paper before Christmas.

This will then be followed by a public consultation.

Discussions are already taking place between government ministers, university leaders and student representatives in a bid to come up with "radical" solutions to the funding crisis.

A Scottish Government spokesman said: "To find a 'uniquely Scottish' solution the Cabinet Secretary has initiated a debate involving government, universities and students about how higher education will be paid for in future.

"The Cabinet Secretary has made clear he wants to ensure all sensible ideas, no matter how radical, are given a chance to be aired.

"Only one measure has been ruled out - tuition fees."

The National Union of Students in Scotland is consulting with members on the idea of students contributing towards the cost of higher education once they have graduated. But the preferred option is to look elsewhere - and specifically, in the direction of business - to contribute to university funding.

NUS Scotland president Liam Burns said: "In terms of Scotland, we will have to take note of what is said (in the Browne report] but it's a very different conversation we are having.

"As far as we're concerned, any price tag in education is a fee.

Mike Russell needs to be careful about his promise to rule out tuition fees.

"His language has been getting softer recently, saying he promises to rule out "up-front" tuition fees.

"The problem is, one person's graduate contributions is another person's graduate fees."

Mr Burns said that any scheme looking at graduate contributions would have to work differently from the graduate endowment scheme which was scrapped three years ago by the SNP.

As the endowment was a set rate of just over 2000, Mr Burns believed it was unfair as those graduates earning less money had to pay the same rate as high-fliers.

"We know that some students get a genuine substantial financial benefit from university," he said.

"If someone is seeing that benefit - and we're talking 25,000 or 30,000 - and we could guarantee it goes back to helping student support and protecting places then perhaps we could think about contributions.

"But we are not there yet and we won't know until November what members think of this."

He added: "We are getting tired that business is not talked about as a way of increasing revenue.

"Business is one of the main benefactors of education."

Some tough decisions have to be made to secure Scotland's reputation as world leaders in education, but the question remains to be seen as to who will be brave enough to make them.

While the devil will be in the detail - and the detail will have its own share of controversy - it seems like there is little other option to secure the future of Scottish universities and in doing so, secure Scotland's pride.

WHAT HAPPENS ELSEWHERE?

AUSTRALIA Students pay back deferred fees when they reach a certain earnings threshold. The Scottish Conservatives back this model.

UNITED STATES Institutions have the right to charge tuition fees without having any upper limit. Some Scottish university leaders believe Scotland should follow this model.

ENGLAND AND WALES

Lord Browne's student finance review today recommended lifting the cap on fees. At present, the government pays students' fees at university but once they graduate and are earning more than 15,000 they start to pay back 3290 for each year of their degree. The review proposed that this rises to 7000 or more.