Funding mix best way to pay for college, say chiefs

A COMBINATION of top-up fees and student loans is the best way to fund third-level education and ensure social equality in the system, university presidents have claimed.

Their first contribution to the fees debate has come ahead of a long-awaited meeting with Education Minister Batt O’Keeffe today to discuss their concerns about Government funding, which they claim has fallen enough to threaten the financial stability of their colleges.

In a blunt assessment of suggestions that fees might be levied on families earning above a certain income level, the seven university chiefs warn that any such system would require significant work on means testing. The minister has sought advice on this question to address inequities in the previous fees system which allowed some categories of workers to avoid fees.

“Such a system would take some time to develop and further militates against fees being seen as a panacea for the current difficulties with the public finances,” said the statement from the Irish Universities Association (IUA).

The presidents are suggesting, instead, a system combining top-up fees charged by colleges to supplement government investment, and loans which could be taken out by students to cover these fees, in a model similar to that in Australia.

“Repayment of the loan does not fall due until the student has finished college, is in employment, and has exceeded a defined income threshold,” they said.

They suggest a number of advantages would arise, including the lack of any up-front financial obligation and focus being shifted from parents towards students who are the ones to benefit from improved income potential.

Mr O’Keeffe has made clear it could be up to 18 months before any proposals are put to the Government but the university bosses said a decision in principle on how to proceed must be taken quickly to allow proper planning of the implementation process.

But IUA chief executive Ned Costello warned that the more urgent concern for universities is the funding situation, having been told to cut pay bills by 3% next year on top of what they say have been significant falls in per-student budgets.

Despite government assertions that funding has increased by a third since 2005 to €2 billion, the OECD reported this month that third level spending on a per-student basis, including research and development investment, has fallen here since 2000, as funding here and in other countries struggles to keep up with increased student numbers.

Six of the seven universities are operating on funding deficits estimated to be at least €15 million, with Dublin City University the only one believed to be running within budget. These points will be stressed to Mr O’Keeffe and his officials at their first meeting with the university bosses this afternoon.

“The proposed cuts will have serious implications for students’ experience of higher education, as well as for teaching and learning overall,” said Mr Costello.