Student loan scheme unlikely within lifetime of next government

FG and FF propose to refer report to an Oireachtas committee to examine feasibility

Student loans: After eight years of spending cuts and rising student numbers, senior staff at universities and third-level colleges say funding shortages are reaching “crisis” levels. Photograph:  Thinkstock
Student loans: After eight years of spending cuts and rising student numbers, senior staff at universities and third-level colleges say funding shortages are reaching “crisis” levels. Photograph: Thinkstock

Fine Gael and Fianna Fáil have both proposed that a report which examines the feasibility of a student loan scheme for third-level education should be referred to an Oireachtas committee.

Draft policy documents produced by both parties indicate that no quick decision will be made on the issue.

As a result, some political observers say it is doubtful a decision over a student loan scheme will be made within the lifetime of a new government.

After eight years of spending cuts and rising student numbers, senior staff at universities and third-level colleges say funding shortages are reaching “crisis” levels and additional funding is urgently required.

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With numbers going to third level projected to grow by 30 per cent over the next 11 years, experts say an extra €1 billion is required just to keep pace with demand.

An expert group chaired by former union leader Peter Cassells has completed an unpublished report on funding options to help sustain and grow the sector over the coming years.

Realistic way

Although the group presents a range of options, it leans heavily on an income-contingent loan model for graduates as the only realistic way of generating funds.

Fine Gael’s draft policy document acknowledges that “significant exchequer resources” are required for the sector.

“Following the publication of the expert group report on the future funding of the higher education sector, we will propose that the relevant cross-party Oireachtas committee review its recommendations and outline a proposed funding plan for this sector,” it states.

‘Earned autonomy’

It also proposes an examination of the efficiency and operation of the student grant system, and says universities could be given greater flexibility and “earned autonomy”.

Fianna Fáil’s draft policy document says it will seek all-party approval on recommendations linked to the report within a 12-month period.

The party has also pledged that there should be a freeze on the €3,000 student fee.

In addition, it says a multiannual funding programme is required to raise higher education funding and standards by increasing capital and current funding.

An increase in the student maintenance grant and student hardship fund is also required to promote equality of access to higher education and reintroduce post-graduate grants from 2017 onwards.

Fianna Fáil’s policy also pledges to cease the voluntary contributions that parents are being asked to make in schools across the country.

In addition, it says all children – no matter what religion – should have access to their local schools.

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent