The bill would end the payment paid by Scots graduates

The Graduate Endowment Bill aims to scrap the fee for about 50,000 students including new graduates and those who have just started new courses.

Education and Lifelong Learning Secretary Fiona Hyslop said removing the fee would also benefit prospective employers and the Scottish economy.

She said abolition of the fee was good news for students and would benefit the public purse.

Ms Hyslop said: "Delivering on this key manifesto pledge shows that we are serious about reducing the burden of graduate debt which can hold back new graduates or even deter potential university students.

"Abolishing the fee is not just good news for current students but is also in the best interest of the public purse.

The Government should bring forward a White Paper on student and university funding Jeremy Purvis Lib Dem education spokesman

"It is an inefficient way of raising income with taxpayers losing around a third of all fee income collected."

Liberal Democrat education spokesman Jeremy Purvis said the Graduate Endowment Bill was a "missed opportunity".

He added: "The government should bring forward a White Paper on student and university funding.

"Liberal Democrats want a better deal for students. The White Paper should include an increase to the grants for our most vulnerable students and plans for a new minimum income guarantee for all students.