A two-year tuition freeze at Alberta colleges and universities has been lifted and replaced with a policy that ties any future increases to the rate of inflation.

Advanced Education Minister Denis Herard said Friday the change will help students save thousands of dollars.

To make up for the shortfall in revenue, the government will forward $136 million to the province's post-secondary institutions.

Herard's new policy also includes more support for part-time students and more scholarships.

Almost two years ago, Premier Ralph Klein promised that post-secondary education in Alberta would be the most affordable in the country.

Herard said the government is making good on that promise.

"We are well above other jurisdictions with respect to all of the support systems that we currently provide, let alone all the things we announced today so I think that we're in pretty good shape."

But student leaders are not pleased with the new policy. They wanted a rollback in tuitions and hoped future increases would be limited to less than the rate of inflation.