“The removal of the graduate endowment fee is great news for current and future students and last year’s graduates, helping to significantly reduce their debt burden.”

She described the abolition of the fee as a “downpayment” on plans to tackle student debt.

The SNP had pledged to ditch student debt in its election manifesto and Ms Hyslop added: “We believe that debt, and the fear of debt, can be a real deterrent and can actually prevent some young people going to university.

“That’s why we’re committed to relieving the debt burden and abolishing the graduate endowment fee is the first stage of our plans.”

Both Labour and the Tories were left licking their wounds after failing to force the Government to instigate a review into the future of university funding.

The abolition of the fee was achieved with the backing of the Greens and Independent MSP Margo MacDonald.

The Liberal Democrats backed the bill as long as the Government promised to look at the issue of a guaranteed minimum income for students, which was a manifesto commitment.

But, according to Parliament voting records, also among those who backed it in the final vote was Labour rebel Elaine Smith, MSP for Coatbridge and Chryston.

Her Labour colleague Richard Baker, a former president of the National Union of Students in Scotland, voted against scrapping the charge.

Around 50,000 students will benefit from the abolition of the graduate endowment. Those who graduated last summer will no longer be required to pay, and those who will graduate this year will also benefit, along with those currently at university and future generations of students.

But Labour’s Education spokeswoman Rhona Brankin claimed ministers had “failed miserably” to produce persuasive evidence that simply scrapping the charge would increase the numbers going to university and would do nothing to alleviate student poverty.

She called for an independent commission to be established to examine future funding of the sector and student support.

Ms Brankin said: “We believe the time is right to set a long-term direction for our universities and to support students.”

Tory deputy leader Murdo Fraser backed her call for an independent review.