Higher education fees: ‘Study now pay later model not the answer’

“Study now, pay later” models for higher education fees would lead to an “astronomical increase” in costs for students, the president of the Union of Students in Ireland (USI) has said.

“Look at any country that has introduced such a model,” USI president Kevin Donoghue said.

“In the US there’s $1.2tn [€1tn] of student debt. In Australia, a loan is between $40,000 and $80,000 [€25,800 and €51,600] for a three-year degree.”

He was speaking in advance of a consultation forum on higher education funding being held today in the Gresham Hotel, Dublin, by the Expert Group on Future Funding for Higher Education.

The group, chaired by Peter Cassells, was established by Education Minister Jan O’Sullivan last year to explore sustainable models for funding higher education. It is due to report at the end of 2015.

Jan O’Sullivan

The group estimates that funding for Irish third-level education will need to increase by 50% in the next decade to meet the soaring costs of college education.

The EU standard is one lecturer to 15 students. In Ireland, the rate is currently one lecturer to 19 students, and there are growing fears Irish third level is on the brink of a funding crisis.

An income-contingent model is one where a student has their fees deferred until their income meets a certain level and is one of the options the group is exploring.

A similar model was introduced in the UK in 1998. Fees were £1,000. Currently, fees for individual universities in the UK are between £6,000 and £9,000 (€8,372 and €12,557).

According to a recent survey conducted by Bank of Ireland, 64% of students live on less than €100 per week. Some 44% said they supported student expenses with a part-time job, while 34% received support from their parents.

“The answer is more public funding,” Mr Donoghue said. “Education is a public good that provides benefits for the whole country, not a burden. It’s good to have this conversation but the solution has to be long-term; we need to think in terms of our children and our children’s children.

“An income contingent model is not an appropriate model here or anywhere. It drives up the cost and deters people from studying in Ireland,” Mr Donoghue said.

The USI also believes that income-contingent fees will cause an increase in emigration and a barrier to third-level entry for those from low-income backgrounds.

Dr Kevin Denny of the UDC school of economics does not believe this is the case. He said that, since the abolition o f fees in 1996, there has not been a substantial change in the rates of uptake of third-level places by those from poorer socio-economic backgrounds. “In crude terms, cash isn’t the only cause,” Dr Denny said. “We need to address other factors like acquisition of points at second level and the number of places available.”

A representative for the education minister said: “We are awaiting the findings of the expert group. The minister won’t be making any statement until then.”