The Government should scrap its target of 50 per cent participation in higher education, according to a graduate recruitment body.
The Association of Graduate Recruiters said the target was "artificial" and had devalued degrees.
The group also urged political partied to support the removal of the the cap on top-up fees by 2020.
It said instead, a national savings scheme should be introduced in which families can prepare for the costs of higher education study.
Carl Gilleard, chief executive of the AGR, said the proposals put forward by the AGR had the support of 750 major employers in the UK. He added that between them, the employers take on around 30,000 graduates per year in the UK.
He said: "In our opinion, there has never been a greater need for Government, employers and universities to build a shared vision for higher education. I do not believe it is overstating the case to say that the UK's prosperity and productivity are depending on it.
"We know that some of these calls to action - particularly those which relate to funding and finance - are unlikely to receive a universal welcome.
"After careful consideration, however, we have concluded that this package of measures is the best way to drive up standards in higher education, provide a better return on investment for students and parents, and ensure the UK remains competitive in a global knowledge economy."
