Liberal Democrat MPs passed a motion last Tuesday to support the National Union of Students’ proposal of “replacing tuition fees and student loans with a graduate tax system”.

The NUS has gladly welcomed this definitive development, especially after Nick Clegg caused fears by failing to mention higher education in his party conference speech last Monday.

Last year, Lib Dems pledged to “vote against any increase in fees in the next Parliament and to pressure the Government to introduce a fairer alternative”. CUSU wrote to Mr Clegg this week to remind him of his “binding commitment”.

Aaron Porter, NUS President, told Varsity: “We've put forward a legitimate, fully-costed, progressive and sustainable model of funding university education. I think the campaign has been a huge success already ... and there is no way that the government can now act without taking our views into account.”

There are two prevailing proposals for the future of higher education finance: Lord Browne’s review which will be published later this autumn, and the NUS’ Graduate Tax scheme favoured by Lib Dem and Labour MPs.

Browne’s independent review of tuition fees is likely to have Conservative backing. He is expected to propose a rise in the tuition fee cap from £3,290 a year to £5,000 and eventually £7,000, meaning some students might leave university in £44,000 debt.

Prices will then vary according to market forces, such as the popularity and resource demands of each course and institution. Thus some Cambridge science degrees could see annual tuition fees of £14,000.

With the Lib Dem motion passed, however, and if all MPs vote according to expectations, Browne’s proposal could fall by 16 votes.

Under the Graduate Tax proposal university students would pay retrospectively for their education depending upon their income, seeing an end to tuition fees and student loans.

The top 20% of graduate earners would pay 2.5% of their income, on average £125 a month, for the 20 years following graduation. This would equal £30,000 for their degree. The bottom quintile would pay 0.3%, or about £5 a month, which is only £1,200 overall.

A Graduate Tax would be easier to administrate than the current system and would generate more revenue than tuition fees even if the cap was raised to £5,000.

Rahul Mansigani, CUSU President, made the student body’s opinion clear: “Increased tuition fees are not viable: the figure for universities like Oxbridge could go much higher than £7000 a year.

“A market in Higher Education would take us backwards in our access efforts to an unprecedented level and would undermine all of the work that is being done to make HE more accessible.”

One Cambridge student agreed: “I don’t see how any reasonable person could support something like seven grand tuition fees. Education and success need to be something available to all people, at least with a graduate tax we know that people can afford it.”

Hannah Keal, Chair of Cambridge Student Liberal Democrats, said: “It's not perfect, but it is proportionate, it is fairer than our current system, and it’s a step in the right direction. Any system like this would have the effect of making higher education less about money, and more about value. [The Lib Dem motion is] a reassurance, and a re-iteration of our values.”

On October 12th, a panel discussion on higher education funding is being held at the Cambridge Union Society attended, among others, by NUS President Aaron Porter.

There will also be a national demonstration on 10 November in opposition to the damaging education funding cuts. University funding has been cut by £398m into next year.