Uni fee deregulation shelved

University students no longer face the prospect of paying more for their degrees.

The federal budget has confirmed the death of a plan to allow higher education institutions to deregulate course fees.

But the government hasn't given up entirely on a proposal which failed to clear parliament twice and which Labor has long argued would lead to $100,000 degrees.

In its search for savings, the government wants to hear alternative ideas to deregulation - including one that allows universities to set fees for a "small cohort" of students enrolled in innovative courses.

It could also lower the $54,126 threshold at which people have to repay their loans once they're in work, or raise the rate of repayment from the maximum eight per cent.

Higher education reforms which included a 20 per cent funding cut to universities have been delayed until 2018.

Students may also have to face paying more for their fees upfront, with the government considering whether to flip the taxpayer contribution more heavily onto students.

Taxpayers now contribute 58 per cent towards study fees while students make up 42 per cent.

The government is floating cutting its contribution to 20 per cent,as well as reducing the taxpayer-backed grant per student.