Labor will reverse their position to back $1.1 billion in higher education budget savings, in a move that will see university students lose their 10 per cent discount on HECS fees.

The move is in order to balance out their own university spending commitments after Labor said in September they would pay universities more money per student rather than deregulate fees if election, at a cost to the budget of a net $2.5 billion over the first four years.

The savings measures have been stalled in the Senate since they were first proposed by the former Labor government to fund their Gonski school reforms, then rejected by the opposition. They have since been were re-introduced into parliament under the Turnbull government by new Education Minister Simon Birmingham.

The opposition has now agreed to support the government's move to remove the 10 per cent HECS HELP upfront payment discount. Louise Kennerley

The opposition have now agreed to support the government's move to remove the 10 per cent HECS HELP upfront payment discount and the 5 per cent voluntary HELP repayment bonus.

This is set to save the government $200 million.