Farmers and the self-employed are expected to lose out in a major review of the higher education grants system, to be published shortly.
The Department of Education is exploring new systems which would more accurately record the income of farmers and wealthy self-employed. Currently, these groups are only assessed on their "reckonable income" when applying for grants. However, the new model would also include the value of their land, property and other assets. This is likely to make a large number of farmers and self-employed ineligible for the grant.
The Minister for Education, Mr Dempsey, is known to be concerned at the widespread anomalies in the current grant system. A few years ago, a HEA report revealed how one applicant's father had net assets of £500,000 but whose "reckonable income" for grants purposes was just £6,228. No action has been taken since to reform the system.
The Union of Students in Ireland last night said anybody who was not entitled to a grant should have it withdrawn. The USI president, Mr Colm Jordan, said "at a stroke of a pen" the Minister could make the grant system fairer.
"There has been a plethora of reports in this area, so do we really need another review?" he asked.
A students can qualify for a full grant if the family's annual income does not exceed €21,629.
The Department is working with both the ESRI and the Paris-based OECD on the review. The ESRI is examining the social background of students while the OECD is compiling a report on how higher education is financed in 12 member-states.
On fees, sources say the Department's report is likely to conclude that the abolition of third-level fees in 1995 did little to widen access to college for disadvantaged and poorer students.
The changes to the higher education grant scheme are being recommended after investigations by the Department showed that the children of wealthy farmers and successful business people were often more likely to gain grants than unskilled workers.
Under the current grants system, farmers and the self-employed can reduce their reckonable income by purchasing assets for the years when their children are in college.
According to a recent Dáil answer, farmers received more than 1,000 of the 6,000 grants given by 26 local authorities last year. Nearly 400 self-employed people received grants but only 137 from homes headed by unskilled manual workers secured grants.
Mr Dempsey has already signalled that fees could return "for those who can afford them". He has stressed that any savings made from increased charges will be diverted to help widen access. In practice, this could mean better maintenance and other supports for poorer students with fees or increased student charges for the middle and upper classes.
Farmers were well represented in the annual grant returns for 2000, for example. In Cork, farmers received 145 grant awards, 17 for students from homes headed by unskilled manual workers. The self-employed also did well, receiving 45 grant awards.
A similar pattern was noticeable in Galway, where farmers got 120 awards compared to two awards for students from homes headed by unskilled manual workers. In Dublin City Council, 17 awards were given to homes headed by higher professionals.
The last comprehensive report on grants, by Dr Dónal de Buitléir, said there was a lack of public confidence in the system. "While no scheme will ever be perfect, the existing schemes are widely regarded as unfair," it said. "The point most often made is that the PAYE sector is treated harshly and that students whose parents are self-employed receive a disproportionate number of grants."