University heads want fees paid from student loans

President of Universty will lobby for the introduction of an Australian-style student loan system when they meet Minister for Education Batt O'Keeffe tomorrow.

The seven college heads have decided to oppose the return of the old fees regime, abolished in 1995, as problematic and inequitable.

Instead, they favour a system where Exchequer support for colleges would be "topped up" by student fees. But the cost of these fees would be lent to students and repaid once they start working.

They say this would help shift the burden of college fees from the parent to the student who actually benefits from higher education.

In an article in today's Irish Times, Ned Costello, chief executive of the Irish Universities Association (IUA), representing the seven presidents, writes: "University heads have carefully weighed up the pros and cons of the various approaches and believe that a replication of the previous fees regime would be wrong."

A senior university figure said: "We don't want a new fees regime which is messy and poorly thought out. This is a once-off opportunity to get things right through a developed system of top-up fees and income contingent loans."

Last week, the Minister said the 33,000 millionaires in the State should be asked to pay university fees. He stressed that any new fees regime would only apply to the wealthy and those with a family income well in excess of €120,000.

University presidents say the issue of who is "wealthy" is open to debate. Punitive fee levels for a small number could see a brain drain of Irish students overseas, they warn, but a low income threshold would be unfair and unjust.

A combination of fees and loans would "build a system which delivers both quality and equity", they say.

The Australian model has been praised as an effective and fair means of generating income for higher education. Key features of the model favoured by Irish university presidents include:

• Colleges charge "top-up" fees to supplement support from the State;

• All students have the option of taking out a loan to cover the cost;

• Repayment is made once the graduate is in employment;

The amount paid is linked to income. Only those above a specific income threshold are liable to fees.

College heads say significant public consultation will be needed before the system can be implemented. This, they say, could be done as part of the new national strategy for higher education.

It is understood UCD president and IUA chairman, Dr Hugh Brady, will tell the Minister that the funding crisis has reached a "tipping point".

The Minister has ordered a 3 per cent cut in payroll costs and a 50 per cent cut in promotional activity. Dr Brady is expected to warn that cuts in student services and less popular courses will be inevitable.