So, what would you two suggest instead? So far the only two suggestions I've seen are reducing student numbers or introducing a graduate tax. The former would do great harm to the country's education and increase burden on benefits IMHO, while the latter would still involve an administrative overhead and possible be considered unfair, given that at least with fees you can decide whether to go to uni or not, while with a graduate tax you have already made that decision before being told the financial penalty for doing so.
Devolved govt.s have argued that English university fees still affect non-English countries, and they're right to some extent - in Scotland's case if they get an influx of Students then they might not be able to afford their own budget plans which are based on current numbers. In Wales' case university funding still comes from the central treasury.