O'Keeffe to discuss student loan plan with universities

MINISTER FOR Education Batt O'Keeffe has reacted positively to the proposed introduction of a student loan system.

But he wants university presidents to "flesh out" their proposals at a key meeting between both sides today.

A ministerial spokesman said the plan for an Australian style loan system was a "constructive contribution" to the debate on tuition charges.

The seven university presidents and Ned Costello, chief executive of their representative body, the Irish Universities Association (IUA), will also detail the funding crisis at third level during today's meeting.

UCD president Dr Hugh Brady - the current chairman of the IUA - will tell the Minister how the colleges face debts totalling almost €20 million this year.

Earlier this week TCD Provost Dr John Hegarty warned staff of the deepening financial crisis facing the college.

Today, the IUA will propose a combination of top-up fees and student loans. Students would repay these loans when they started working - provided they reach a designated income threshold. The meeting will tease out how the new system will work.

Last night the Union of Students in Ireland (USI) said it strongly opposed the introduction of the "flawed" Australian system - known as the Higher Education Contribution Scheme (HECS) - in this State.

It pointed out that the Australian model has been slated by many critics and is under review in Australia.

Australia's education minister, it said, had questioned its credibility and described the scheme as "at best complex and at worst anomalous, inconsistent and irrational".

USI president Shane Kelly said: "We now find ourselves in an outrageous situation: not only is the Minister's plan to reintroduce fees based on flawed mathematics, but now the university presidents want to implement a flawed Australian loan system that the Australians themselves don't want anymore.

"This latest move by the university presidents further illustrates their commitment to raising money and not to student welfare or equity of access to education."

Angus McFarland, the president of the National Union of Students in Australia, said: "If our system is introduced in Ireland, you are going to see poorer students being extremely financially disadvantaged.

"Free education guarantees fair access, HECS or any payment scheme does not. Everyone should be able to access education if they want it. Clearly, the importation of such a broken and flawed system would be of no benefit to Irish students."

Siptu economist Marie Sherlock accused university presidents of sidestepping the fundamental question of how to "fund, incentivise and support students".

The free fees scheme, she said, has played a crucial part in increasing access to third-level education across all the socio-economic groups.

FISC Lenders Commit to Offering Student Loans

A group of FISC lenders, both banks and credit unions, in Maine, have renewed their commitment to student lending to ensure that Maine families have options in regards to Stafford and PLUS Loans for the fall 2008 semester.

During the past year, changes in the Federal Family Education Loan (FFEL) Program have made the environment increasingly challenging for financial institutions. Recent changes to federal regulations as well as the on-going credit crunch has resulted in many large lenders scaling back their participation or dropping out of the FFEL Program altogether.

“Community lenders in Maine have always supported the FFEL Program through the Maine Advantage Education Loan Program and the HELPP Program,” said Jill Parker, Senior Vice President of Operations. “Through partnership with the Finance Authority of Maine, these lenders are truly making a difference to ensure that loans are available to Maine families in the fall.”

There are over 20 local lenders who currently participate in these loan programs. “These are loans originated in Maine, by Maine lenders and serviced by Maine people,” said Jill Parker. This commitment to the program is nothing new. The majority of these lenders have been participating in the FFEL Program for more than 20 years. “I just think it’s tremendous that when so many large national banks and student lending companies are backing away from this program due to profitability concerns, Maine lenders are jumping in with both feet. That’s what community lending is all about.”

To find out if your local lender participates in the program, visit www.maineadvantage.com

About FISC
Headquartered in Lewiston, Maine with offices in Portsmouth, New Hampshire, FISC has provided services and solutions to financial institutions and corporations for more than 30 years. The company designs and implements full-service outsourcing solutions that make the operations of financial, insurance, government, not-for-profit, and other organizations more efficient and more affordable. FISC’s core services include item processing and electronic clearing, software solutions, loan servicing, lockbox and disaster recovery services. In addition, FISC offers comprehensive statement and invoice printing, delivery, design and management.