Call me old-fashioned, but if the whole country benefits from a certain proportion of the population holding degrees, then the system should, I believe, be funded through general taxation. Indeed, if the number of graduates increases, and these graduates are higher earners, surely that should be a supply of greater revenue through direct taxation? This article about funding in other countries isn't happy reading; I preferred this one, which points out the case that more graduates is not necessarily a good thing.
A degree is not a human right; nor should it be denied to anyone with the ability to attain that level of education. But the frenzy over the desirability of degrees probably pushes many people into "degree" courses to which they are ill-suited, and is not a good investment for them individually nor the country as a whole (and don't get me started on "Media Studies"). The government needs to make apprenticeships and other industries (let's face it, plumbing can't be offshored) desirable career paths as well.