Fine Gael has proposed a new graduate PRSI scheme to cover the cost of education.
The scheme would see graduates contribute 30% of the cost of their third level education after graduation over a maximum of ten years.
Fine Gael education spokesperson Brian Hayes says registration fees are a barrier to education and should also be abolished.
The party says the proposals would raise €500m per year when fully operational.
A deferred graduate contribution scheme is something that the party hopes to reach an agreement on with Minister for Education Batt O'Keeffe.
The increase in third level registration fees in the Budget was criticised by Fine Gael.
'We have already seen fees by the back door with the recent Budget decision to radically increase third level registration fees from €900 to €1,500,' Mr Hayes said.
Fine Gael says its scheme is 'straightforward, free at the point of delivery and would only apply to new entrants'.
Mr Hayes says the new scheme should be part of a radical reform agenda in colleges.
A spokesman for Minister O'Keeffe said: 'Obviously, we welcome any constructive contribution to the ongoing debate on the introduction of a form of student contribution.
'However, this proposal is somewhat surprising from Fine Gael whose education spokesman exhorted the Government parties to be 'honest with students' as he stood on the back of a lorry at a student demonstration for free third-level education earlier this year.
'Next month, Minister O'Keeffe will present to Cabinet his report setting out a detailed range of options on the introduction of a student contribution.'
