Increase in grants and drop in fees being considered to take pressure off third-level students

A number of significant changes to the student grants scheme on the cards, including increases in student grants which would see some people receive €1,279 more each year

Minister for Higher Education Simon Harris has indicated that he would like to see some reduction in student fees as part Budget 2023. Picture: Gareth Chaney/Collins Photos

A 25% increase in student grants and a considerable reduction in third-level fees are among the measures being considered as part of the budget.

The Department of Higher Education has costed a number of significant changes to the student grants scheme, including increases in student grants which would see some people receive €1,279 more each year.

Higher Education Minister Simon Harris will publish the annual options paper on reducing the cost of higher education today, which contains measures that will reduce the financial burden of going to college on families and students.

Among the proposals which are costed in the report are:

• Adjusting income thresholds to qualify for the standard rate of student grant to take account of changes in real incomes over time. The report finds that increasing the threshold by €250 would cost the State €0.9m while on the upper limit a increase of €1,000 in the threshold would cost €3.7m and would see 4,700 extra students qualify for supports;
• Reducing the qualifying distance to avail of the non-adjacent maintenance grant from 30km to 24km. This would cost an estimated €6m each year;
• Increasing the post-graduate maintenance grant rates to the same level as the supports provided to undergraduates across all bands. This change would cost €8.6m each year.

Mr Harris has already indicated that he would like to see some reduction in student fees as part of this month's budget. The paper puts forward a number of options in relation to this which would have varying levels of cost associated with them.

A flat reduction of €250 bringing student fees down to €2,750, for example, would cost the taxpayer €21.3m.

A €500 cut in the fee would cost €42.7m, while a €750 reduction would cost €64m. The final option provided is a €1,000 cut, bringing fees down to €2,000, which would need €85.4m to introduce.

An alternative option to across-the-board fee reductions, may be to consider an increase to the Susi student grant budget, this would make more people eligible for the full or half rate student contribution grant.

Meanwhile, increasing the non-adjacent maintenance grant rates, which have been identified as a priority in a review of the student grant scheme, by 25% would cost €11.24m next year, with the full year cost coming to €25.29m. This measure would benefit around 32,000 students.

The student maintenance grant is a contribution towards the living costs of a student and provides different levels of financial support depending on means and the distance a student lives from their college.

However, other options, which include increasing all student grants, or widening out the eligibility criteria are also contained in the document.

Mr Harris said: “In May, we launched ‘Funding the Future’ — a funding and reform framework for higher education. As part of the policy, the Government committed to publishing an annual paper which examines the costs associated with a range of options available to support students with the cost and accessibility of higher education.

“It is important to stress these are the options available and do not pre-empt the budgetary process,” Mr Harris said.

Looking to the more longer term, the review raises the issue of flexible learning and states that many individuals, particularly those from lower-income families or disadvantaged groups, may not be in a position to engage full time in higher education.

It suggests that facilitating students to complete their third- level education on a more flexible basis would also mean that some students could remain part of the labour force and contribute to the exchequer.

However it states that significant planning would have to go into the delivery of expanding part-time third level education.