Higher education in the college sector has become an increasingly important aspect of the tertiary education system in Scotland, particularly in widening access to higher education for students from disadvantaged backgrounds. In this respect there is a distinctively different tradition in Scotland when compared with England. Despite the success of the college sector, a number of issues and challenges have emerged and it is important that these are recognised and addressed in developing policy responses which will improve the opportunities provided for students. This article explores the changing role of higher education in the Scottish colleges, the ambiguities which have emerged in its functions, the problems which this has led to, and the opportunities to address this through further policy initiatives.