PARENTS WILL get a “substantial’’ discount if they pay third-level fees in advance under plans being considered by Minister for Education Batt O’Keeffe.
Education sources say the plan has the potential to generate an extra €70 million a year for higher education.
Mr O’Keeffe will present his proposals on new student charges to Cabinet within the next 10 days.
The central plank of his proposals is expected to be a new “income-contingent loan scheme’’.
Students will become liable for fees after graduation once their income reaches a certain level.
But the Government is set to offer a substantial discount of about 20 per cent for those who pay upfront – in order to generate funds for the exchequer in the short term.
At present, the State “pays’’ €350 million to the third-level system in lieu of fees each year. Sources say the plan to offer a discount of about 20 per cent for upfront payments could yield €70 million.
The new regime is set to be introduced next year. However most students will not become liable to repay the cost of their tuition until at least 2013, three years after they graduate. The Government has still to decide on the level at which fees will be set.
Yesterday, Mr O’Keeffe told members of the Higher Education Authority (HEA) he wanted to increase the funding base of the higher education system while ensuring affordability.
He said: “A key consideration from my perspective will be that any scheme implemented does not place an unfair burden on students or their families or act as a disincentive to participation in higher education by those from less well-off backgrounds.”
The Minister is also set to press for much tighter financial controls on third-level colleges as part of the new funding arrangements. This could see an end of the autonomy which colleges enjoy on financial matters.
Yesterday’s HEA meeting also heard demands from board members that UCD and other colleges should limit exceptional payments to academics.
On fees, the Minister is under pressure from the Department of Finance to recommend proposals that will generate considerable new funds. But the Minister is also anxious to ensure that his proposals will be endorsed by his Cabinet colleagues.
