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First degrees will remain free in German universities, the education ministers of the 16 federal states have agreed in an attempt to end the fierce dispute over student fees.

But the states will be able to charge fees to "slow lane" students who take too long to graduate.

The Conference of Education Ministers agreed last week to approve two different models for charging penalty fees for long-stay students. The first, already running in the state of Baden-Wurttemberg, will allow education ministries to charge fees to students who exceed the regular study period for their degrees by more than four semesters. Baden-Wurttemberg demands E511 (Pounds 320) per semester from its long-stay students.

The other model will allow students to exceed the average number of semester hours in their degree courses by 30 per cent before being asked to pay up. This aims to help students who attend fewer lectures because of other commitments, such as part-time jobs to pay their way through university or child care.

Willi Lemke, the Social Democratic president of the ministers' conference and education minister of Bremen, said he was pleased with the compromise because "it clearly lays down that no fees will be charged for a first degree".

He now wants the decision confirmed in a treaty between the 16 states to ensure that "free higher education is given a solid foundation. Otherwise we risk the debate flaring up again," he said.

Education minister Edelgard Bulmahn, a passionate opponent of student fees who originally wanted a no-fees clause in the constitution, welcomed this compromise as a guarantee that a first degree will continue to be free.

The conference's decision gives legitimacy to Baden-Wurttemberg's practice of charging fees to long-stay students. Students have challenged this in the courts.

The conference compromise will take some of the fire out of the fees debate in Germany, but it is unlikely to appease hardline supporters or opponents of fees.

Juliane Seifert, higher education representative of the Social Democratic youth wing, Juso, criticised her party's stance. She said any financial limitation would be a hindrance for children from economically weaker families.

Andre Scheer, spokesman for the Association of Marxist Students, said: "The council decision has flung open the gates to a nationwide introduction of student fees."