Universities which fail to improve their student drop-out rates could face cuts in the amount of Government funding they receive, under plans drawn up by the Higher Education Authority (HEA).
The HEA, which advises the Minister for Education, Mr Dempsey, on higher education, believes there should be less of a focus on the number of students enrolling on courses at third- level institutions.
Instead, when calculating the amount of money universities receive from the State, more account should be taken of the number of students who make it to graduation.
According to HEA figures, almost one-in-five university students here will fail to complete their chosen course of study. It believes that by making student completion rates part of the criteria determining the amount of money universities receive, it will ensure students are provided with the necessary supports to complete their chosen course.
Some students drop out of courses because they find they have enrolled on the wrong course, and subsequently enrol on a course more suited to their needs. But where this occurs, the university would not be penalised, as this can be a positive development for the student.
The HEA is also understood to be confident that there are strong systems in place to safeguard course standards in universities. This means there is little risk of individual colleges lowering the standard of their courses in order to ensure more students complete their studies.
The proposals, outlined in a consultation document, may also take into account the level of improvement which an individual institution has made in its drop-out rates. This would mean those starting from a low base will not lose out in terms of funding, once they improve their completion rates.
The HEA plans come at a time when the universities face an effective 10 per cent cut in their day-to-day spending.
About €630 million in public funding is allocated to the seven universities each year.
However, significant progress has been made in recent years in the area of university completion rates.
This has included the appointment of retention officers in all universities and most Institutes of Technology (IOT), and the creation of the university retention network to help co-ordinate policies between institutions.
Drop-out rates in the IOT sector are higher than in the university sector.
A report published in 2000 indicated that 42 per cent of students did not complete their courses.
The drop-out rate for male students was 49 per cent; about 37 per cent of female students failed to complete their course.
Commenting on the proposals, Mr Fergal Costello, head of policy and planning with the HEA, said enhancing participation rates in higher education was vital for future national development.