By Steve Bargeton, political editor, and Debbie Kerr

MSPS HAVE voted to abolish the graduate endowment charge paid by students after they finish their degrees.

Current students and those who graduated last year will not now have to pay the £2289 one-off charge.

The fee was introduced in 2001 after the abolition of upfront tuition fees.

SNP and Lib Dem MSPs combined with the Greens and independent MSP Margo MacDonald to consign the charge, seen by students as a tax on education, to the history books.

Labour and the Tories had opposed abolition, arguing that the £17 million cost of scrapping it would better be spent invested in Scotland’s universities.

However, the two parties yesterday said they were prepared to back abolition in exchange for an independent commission on university funding.

But both Labour and Tory amendments calling for a commission were defeated and scrapping the endowment was passed by 67 votes to 61 with Labour MSP Elaine Smith rebelling and voting with the government.

Students lobbied MSPs as they arrived at Holyrood, handing out leaflets urging members to “scrap this unfair, unnecessary and ineffectual tax.”

They reminded MSPs that they had the power to “remove one of the biggest barriers to students entering higher education.”

At First Minister’s Questions Alex Salmond accused Labour and the Tories of forming an “alliance” to stop the return of free university education

He said it was the Scottish Government’s aim to “re-establish the historic right of every Scot to free education in this country.”

The First Minister rejected the idea of a commission. “We are doing the working party that the universities have been calling for, as opposed to kicking the matter into the long grass like the Conservatives would,” he said.

“Isn’t it wonderful that we have demonstrations outside this Parliament supporting the government, whereas in London they have demonstrations of policemen opposing the Government?”

Around 50,000 students, including those who have just graduated and those who have just started courses, will benefit.

Last night Dundee West SNP MSP Joe FitzPatrick welcomed Parliament’s decision. “This is a fantastic day for all of Scotland’s students. The graduate endowment tuition fee has been abolished. Education for Scotland’s students is now free again,” he said.

“All those who graduate in the future, and those who graduated in 2007 will not have to pay this ridiculous £2300 fee.

“They will not see £2300 added to their debt when they graduate and all future students will know that their right to higher education is based on their ability to learn and not their ability to pay.

“This is a great day for Scotland’s students and all of Scotland’s young people.”

Dundee University Students’ Association president Milan Bogunovic, who had travelled to Holyrood with fellow students, said he was delighted the charge had been abolished.

He said, “We are overjoyed that the graduate endowment has been scrapped—it’s a hugely positive step.

“The move today has managed to abolish 20% of almost every student’s debt.

“Students are, of course, still going to be in debt but it is a positive step in addressing it.

“We are all pleased that the tax has been scrapped but there is more work to come before students have free education in Scotland. Education is still costing huge amounts of money for people and many students are still paying off their debts years after they leave university.

Mr Bogunovic continued, “It has been a good day but there are more issues that need to be addressed over the next couple of years to make education more accessible for everyone, reduce issues of debt and make university more financially stable for the future.”

Abertay University Students’ Association president Andy Love said, “It’s fantastic news. It’s something that has been spoken about for so long and now students can finally move on from this financial concern.

“It is great news because all students in Scotland are affected. It may not have affected their day-to-day lives but when they have finished their course and are making the transition from full-time study to full-time employment, they will definitely notice the difference.

“It opens up so many different avenues for students as the fee really put many of them off coming to study. It is a 100% positive step for students.”