Fairfax Media revealed this week the government is prepared to make major concessions to its higher education package - including reductions to university course funding cuts and a delayed extension of Commonwealth funding to private colleges - to secure Senate support for fee deregulation.

Senator Lambie said Education Minister Christopher Pyne gave the impression during their private negotiations the government would consider funding a financial support package for the University of Tasmania.

"It was hinted at by him," Senator Lambie said. "I said 'I'm not prepared to do that and sell other students out.'

"The discussion didn't go very far because I shut it down.

"We don't want to do special deals for our own states."

The Regional Universities Network is pushing for a $100 million assistance package for universities in "thin markets". 

Senator Lambie said Mr Pyne should "hang his head in shame" for proposing to deregulate university fees.

"Christopher Pyne should buy a box of Kleenex because he's not getting our vote," she said. "We decided a long time ago that we support free education."

A spokesman for Mr Pyne said: "The government isn't going to provide a running commentary on negotiations with crossbench senators.

"The Bill expands opportunities for more students and ensures our universities are sustainable and competitive internationally into the future."

Mr Pyne said this week he had met with the crossbenchers up to six times each to brief them on the reforms ahead of a Senate debate next week.

Reform advocates have pinned their hopes on winning over PUP senators Dio Wang and Glenn Lazarus, independent senator Nick Xenophon and Motoring Enthusiast Party senator Ricky Muir.

Mr Palmer talked down speculation of a split within the PUP, saying he expects the party to vote together against fee deregulation.

"We shouldn't want to double the fees for students to go to university," he said. "If we burden people with $100,000 degrees then they will be very conservative and the nation and economy will suffer."

Senator Wang did not respond to questions.

The Senate will blow a $18 billion hole in the budget over 10 years if it rejects the government's higher education savings, according to the Parliamentary Budget Office. Growth in higher education spending is projected to slow from 5.2 per cent a year to 1.2 per cent a year over the medium term under the government's reforms.

Grattan Institute higher education program director Andrew Norton said delaying the expansion of demand-driven funding to private colleges by three years would dampen fee competition and increase the dangers of universities overcharging students.

Australian Council of Private Education chief executive Larry Davies said the sector opposed any delay to the expansion of Commonwealth support to for-profit colleges.