The plan announced on Monday will save the Government $2.2 billion and is mostly based on changes that don't have to get through Parliament.
From next year, the money the Commonwealth pays to universities for students in bachelor courses will be capped at 2017 levels.
The freeze will stay in place for two years.
That means if universities want to accept more students into HELP or VET-funded positions, they'll have to figure out how to divide up the money they're already getting to accommodate any increased intake.
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