Report calls for upfront fees and loan plan

STUDENTS face significant hikes in college costs as Tánaiste Mary Coughlan endorsed calls for a mix of upfront fees and a student loan scheme.

The National Strategy for Higher Education report launched by the education minister does not outline specific fee amounts but it strongly recommends a direct contribution by students or graduates of a share of their third-level education costs.

The strategy group chaired by economist Colin Hunt said this was the only realistic option to support growth in the numbers attending college and would reflect the considerable private returns for third-level graduates, whose lifetime earnings are 69% more than those who do not have a degree.

“A direct student contribution, based on a combination of upfront fees and an income-contingent loan scheme, is recommended as an essential element of future funding arrangements for the system,” the report states.

Ms Coughlan said the report has been endorsed by the Government and work on its implementation will begin within weeks under a group chaired by Department of Education secretary general Brigid McManus.

It proposes significant structural changes, particularly to the institute of technology sector, and focus on improving students’ experience in their first year at college to help reduce dropout rates.

But following significant cuts in recent years to public funding for higher education, at the same time as student numbers have been rising, Ms Coughlan said it would be difficult to increase Exchequer investment even if students pay some or all their costs.

“It is not my intention that students should be left with an unmanageable debt burden upon graduation.

“Rather, students should make an equitable contribution to the overall cost of the significant economic advantage they gain from higher education,” she said.

Among the loan scheme options understood to be under examination by her department are funding directly from the European Investment Bank or the NTMA or loans administered by private education finance companies using public finances.

Fine Gael favours a graduate contribution system for degree holders and its education spokesperson Fergus O’Dowd said their proposal is being reviewed to take the poor state of the public coffers into account.

Labour Party education spokesman Ruairi Quinn opposes any barriers to attending college at the point of entry, suggesting some scope for negotiation on a system under which fees could be paid back after graduation.