Colleges propose student loans instead of new fees

A radical plan for a 'deferred loans' scheme for thousands of students has been drawn up by university heads, the Irish Independent can reveal.

Under the plan, students would start to pay back the 'loan' within a few years of graduation, after they have reached a certain salary level.

It will be put to Education Minister Batt O'Keeffe as an alternative to the straightforward return of tuition fees when university chiefs meet him tomorrow.

The 'income contingent loan' would pay for part of undergraduate third-level education which, at the moment, is paid entirely by the State.

Students would have the option of either availing of the 'deferred loan' or else paying what would be known as 'top-up' fees up-front when they enter college.

Reduction

No figure has yet been put on the amount of the top-up fee but it would not cover the full economic cost of a course and would likely be of the order of €3,000 or €4,000.

The proposal is basically a variation of the arrangements that exist in the UK where students get a reduction if they pay the fees up-front when they register for university.

Much of tomorrow's meeting will be spent discussing the current funding arrangements for the universities and the effect of cutbacks.

Ireland's seven university heads will point out that the institutions are now at a 'tipping point' and that the likely impact of the reduction of State funding would include:

l Closure of some courses.

l Larger classes and lectures.

l Reduction in student support services.

l A gradual erosion in the quality of the learning experience.

Mr O'Keeffe has stated publicly that the universities have seen their funding increase by one third over the past few years, and that he wants to ensure value for money.

But the universities are expected to point to the recommendation by the international think-tank OECD which called for a 'quantum leap' in funding for higher education.

They are expected to press for clarity on the funding of higher education. One of their concerns is ensuring that, if fees are introduced, State grants will not be cut accordingly.

Crisis

But they are likely to point out that no matter what new scheme is agreed, colleges are still facing a crisis.

They will also argue that a deferred loans scheme is fairer and that it is justifiable on the basis that graduates have a higher earning 'premium' than non-graduates.