Students who choose to stay in Wales following graduation, or Welsh students returning home from study elsewhere in the UK should be eligible to have up to £6,000 a year of their student debts written off, according to Plaid Cymru.
The Welsh party said changes to policy would encourage more Welsh graduates to consider employment in the country, and “ensure the Welsh economy can benefit” from the “talent” of graduates.
Students from Wales currently benefit from additional subsidies if they choose to study in other parts of the UK. Students only pay £3,810 towards their fees each year, with the Welsh government already covering costs per student of up to £5,190 each year.
Plaid Cymru has suggested under the new proposals, students would be able to study any subject at any university of their choice by removing the obstacles imposed by the current tuition fee policies. In addition, it would curtail a growing concern that the Welsh government is subsidising universities in England.
Simon Thomas, the education minister for the party, said: “The current tuition fee policy means we give more money to universities outside of Wales than we do inside of Wales.
"This is unsustainable and Plaid Cymru believes that this is wrong.”
The party also unveiled plans to create up to 50,000 apprenticeships across Wales and boosts to early years education.
Overall, the plans seemed to generate some strong support on social media, with one Twitter user saying it would stop the "brain-drain" which has been "decimating" the country.
However, some have already called the sustainability of the new proposals into question.
The announcement comes ahead of elections for the Welsh National Assembly, which will be held on May 5. Tuition fees are likely to feature prominently in the campaigns.
The Conservatives have said they would scrap the current grant scheme altogether. Labour have said they will “invest in student ambition”, and suggested that the grants would remain in place if they were elected, but certain eligibilities might change.
Elsewhere in the UK, Scottish students who choose to study in Scotland pay only £1,820 per year, whilst Irish students remaining in Northern Ireland can expect to pay £3,805, highlighting the discrepancies in fees across the UK.