Abolition of €3,000 contribution fee and higher third-level student grants considered

The abolition of the €3,000 student contribution fee for up to 100,000 third-level students is among a range of measures outlined in a Government options paper on the cost of higher education. The options paper, produced by the Department of Further and Higher Education, also includes costings on increasing Susi grants by up to 25 per cent, widening eligibility to financial support and an emergency student accommodation fund.

The move comes amid calls for the Government to help ease the cost of going to college against a backdrop of rising prices and scarce student accommodation.

Last year Minister for Further and Higher Education Simon Harris announced a number of “once-off” measures such as a €1,000 reduction in the student contribution fee. It is expected Mr Harris will press for these measures to be retained in October’s budget, at the very least.

In a statement he said the Government was committed to reducing the cost of education for families and students.

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“This paper sets out a number of options to consider in advance of this year’s budget,” he said. “Today we are publishing the paper to have a discussion on the most effective way to drive down costs for students and their families. Decisions will be made at the budget but it is important to see all of the levers available.”

The options paper says a €1,000 cut to the student contribution fee would cost the Exchequer almost €92 million, while abolishing the €3,000 fee altogether would cost just under €255 million. Such a move would benefit about 100,000 students in higher education who benefit from the so-called free fees initiative.

Last year’s budget also included reoccurring measures such as a means-tested €500 reduction in the student contribution fee for eligible grant applicants earning between €62,000 and €100,000.

The options paper says the cost of boosting the reduction to €1,000 would cost the Exchequer €21 million, while a €1,500 cut in fees would cost €42 million.

Other measures outlined in the options paper including increasing the income thresholds for eligibility to a range of student grants, as well as the size of the grants themselves. For example, increasing all maintenance rates by up to 23 per cent would cost about €38.5 million.

In addition it examines the cost of improving a measure in last year’s budget where the income threshold for the student contribution 50 per cent grant (€1,500) was expanded to €62,000.

The options paper estimates that increasing the income threshold by €4,000 would cost almost €20 million.

Student unions have also been lobbying for measures to allow students to be able to earn more during holidays or term time, without it affecting their eligibility for grants.

The options paper notes that there is a “holiday earnings limit” of €6,552 from next month onwards. It says the reason for a limit is to mitigate against students working so much during their education that it negatively impacts on their ability to fully participate in their course.

The paper estimates that removing the provision which limits the deduction of holiday earnings to “earnings outside of term time” and increasing the amount to €7,051 would cost up to €22 million and benefit about 13,000 students.

The options paper also shows the Department of Further and Higher Education is examining measures to assist students with the cost of accommodation. It notes that students face significant challenges in securing appropriate and affordable accommodation, with an average of three applications for every one student bed on-campus. “The level of rent being charged in private rental sector is a significant barrier to higher education for the priority access cohort of socio-economically disadvantaged Irish students,” the paper notes.

While longer-term measures to boost the supply of accommodation are under way, it lists some short term measures such as a new emergency student accommodation fund for student unions at a cost of almost €500,000.

Another option is a “student accommodation bursary” for more vulnerable students such as those leaving State care or members of the Traveller and Roma communities at a cost of €600,000 a year.

Other measures under consideration include boosting stipends or scholarships for about 5,000 PhD researchers to about €25,000; reducing apprenticeship fees for those on off-the-job training; and removing charges for post-Leaving Cert courses.