But it's no more scot-free college

Although third-level tuition fees have been abolished in Scotland, students embarking on courses in Scottish universities in 2001 will have to pay back £2,000 once they start to earn £10,000 per annum.

The pay-back scheme, known as the Graduate Endowment, has been introduced in order to fund some of the costs of a new initiative to widen access to higher and further education by students from under-represented groups. The legislation covering the new scheme will pass through the Scottish parliament during its next session, according to a spokesperson for the Scottish Executive. Students starting college in the 20012002 academic year will have to pay back £2,000 after graduation.

Those who have been offered places in Scottish universities this year but have decided to postpone taking them up until next year will also be required to pay back the £2,000, the spokesperson says.

However, mature students, lone parents and disabled students will be exempt from paying. The Scottish Executive has confirmed to EL that all EU students will be expected to pay the £2,000 graduate endowment charge once their incomes reach £10,000 a year. They will be expected to pay 9 per cent of salary exceeding £10,000 until the endowment is paid.

It may also be possible to pay the amount in a lump sum. Just how the money will be collected from overseas students has yet to be decided.