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Government ‘will reject graduate tax plans'

The coalition government will reject the idea of a graduate tax to pay for university fees in England, a senior Conservative has told the BBC.

The comments came after Liberal Democrat Business Secretary Vince Cable last week set out plans for a graduate tax as a fairer repayment system and said it should be considered "a priority".

However, the BBC's source said that "a pure graduate tax" is as an "unlikely" option.

Ministers are instead exploring the options for a scheme that allows graduates to pay towards their university education in a way that maintains the direct payment from the individual to the university.

The findings of a review of tuition fees and university funding, chaired by Lord Browne are expected to be published in October.

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