SCOTTISH students should pay money directly to their university instead of a graduate tax to government when they start work, a new study claims.
Higher education bosses claim that top-up fees in England will leave them with less money and unable to maintain quality, leading to a brain drain from Scotland.
But the Policy Institute, an independent think-tank, has suggested that universities
north of the Border should borrow against students' future income to raise immediate funds to maintain teaching quality and resources.
A research paper, sent to 1,200 readers in the political, business, media and academic worlds last week, says that tuition fees are misconceived because they reward universities' past reputation and can deter poorer students.
The report states: "Universities would be directly rewarded for improvement in the quality of their teaching, since it would result in higher graduate salaries and higher income.
"Students would have no fear of debt and government would make major savings."
The author of the report, Ben Reilly of St Andrews University, suggests that about two per cent of graduates earnings would be needed.
Reilly said: "If the Scottish Executive decided to fund all of the Scottish universities at a level commensurate with the leading international institutions, it would cost billions extra a year."
Frank Gribben, registrar of Edinburgh University's College of Humanities and Social Science, said: "Although in the short term we've got a reasonable settlement from the Executive, there is concern over how sustainable that will be in the medium term if the larger contribution from graduates in England gives extra income that cannot be matched."
