Shadow education secretary Angela Rayner said last weekend that the policy was “an aim” because they hadn’t figured how to pay for it yet.
It was estimated that it could cost up to £100bn to write off the debts of all former students.
Labour’s Welsh Education Secretary blamed England’s policy for having to hike fees in Wales.
She said yesterday that higher education “operates in a UK-wide and international context”.
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She added: “We are leading the way with our shift to support living costs, but policy in England also has a direct knock-on effect.”
But Conservative Assembly Member Darren Millar said the hike was a “betrayl” of students and Labour voters.
“Just weeks ago, Labour’s first minister was telling people to vote Labour to scrap tuition fees, yet today, with amazing hypocrisy, his Government has announced a hike in the cap on tuition fees paid by Welsh students,” he said.
The loans will be only repaid after graduation and will be linked to earnings.