O'Keeffe battling finance bosses on student fees format [independent.ie]
- Published: 24 March 2009
Source: independent.ie
By John Walshe Education Editor
A FURIOUS behind-the-scenes battle is raging over the exact form of 'contribution' students will have to pay from next year for their college education.
The Department of Finance is understood to be pressing for the straightforward return of tuition fees.
But Education Minister Batt O'Keeffe prefers a graduate payment scheme which would see students repay their fees once their earnings exceed a certain threshold.
From a budgetary point of view, the early return of fees would ease the pressure on the Exchequer, depending on the income threshold above which they would have to be paid.
But politically such a move would lead to a storm of protest from students, and would further alienate the middle classes who benefited from the abolition of college fees in 1996.
A scheme related to the income of graduates is emerging as a more politically acceptable model.
The most popular option is based on a model used in Australia, which allows students to pay the fees up front if they wish or start to pay them back with interest once they reach a certain income level.
The academic who pioneered the model, Bruce Chapman, briefed Irish officials earlier this year.
If this option is chosen it would effectively take several years for the cash-strapped Exchequer to make any significant returns.
Mr O'Keeffe will present a series of options to his Cabinet colleagues within the next 10 days before putting forward his own recommendation.
The Union of Students in Ireland, Labour and Sinn Fein have all vowed to strongly oppose the return of fees.
Fine Gael says it is also opposed to them, but it favours students repaying 30pc of the cost of their course when they graduate and reach a certain income.
USI President Shane Kelly last night said what was being proposed would have serious knock-on effects on third level education and on the economy.
"Students would leave in their thousands to get their education in the UK," he said, pointing out that already this year there was a 13pc increase in applications from the State to UK universities.
- John Walshe Education Editor
