First-time students are facing a cost budget shock

Students about to enter third level education are likely to get a bit of a shock when it comes to budgeting for the costs involved. While tuition fees are no longer an issue for students in the Republic for primary degrees, capitation fees, basic living costs and study-related expenses can quickly mount up to almost £5,000 (€6,349) a year, according to a survey conducted earlier this year by the Union of Students in Ireland (USI).

The figure of nearly £5,000 is calculated for a student living away from home and attending a college in Dublin, for whom monthly costs are estimated by the USI to be approximately £515, which, totted up over a nine-month college year, amount to £4,934. When one realises that the maximum level of maintenance grant available this year is £1,775, it becomes clear that there is a funding gap.

The media attention given recently to the ever-increasing costs of second and third level education would appear to highlight the benefits of forward planning by families for future educational needs. For most, the word "grants" comes immediately to mind when first considering the issue of student finance, closely followed by "part-time jobs" and "student loans".

Even for those students entitled to grant aid, it is generally accepted that, for any student, and especially one living away from home and with no reliance on parental support, living on the typical student grant is near-impossible. The USI says that grants have not kept pace with inflation and that they barely help to ensure basic student subsistence while at college.

"This year, grants increased by 5 per cent, but inflation is now running at 6.2 per cent. We also know that rent costs increased in 1999/2000 by some 33 per cent. "A maximum grant of £49 per week does not even pay the rent in most cases," said the president of USI, Mr Julian de Spainn.

Students studying in State institutions should note that they have to pay a £278 capitation fee at the start of the academic year to cover non-academic expenses. In addition, when applying for a student grant, students under the age of 23 will be means-tested on the basis of their parents' income, while those over 23 will be assessed on their own income.

Part-time jobs have long been part of the student way of life, and students entering college for the first time have a wide variety of possible term-time jobs to choose from, including bar work, grinds for younger students, stacking shelves, shop work, call centres, and drinks reps. The majority of colleges and student unions have job noticeboards or websites that offer a variety of part-time work.

The 2000 USI survey on the cost of student living asked students about part-time employment. The survey found that 53 per cent of the respondents had part-time jobs, while 12 per cent did not say. By far the biggest percentage of these jobs (62 per cent) was to be found in the service industries, while other job titles included general operatives, office workers, trades persons, and teacher/tutors.

The survey found that the average payment per hour for those in part-time work was £4.61, although mature students were likely to do better. The average number of hours worked per week was 17. Students should be aware that employers are now required to pay a minimum wage - £4.40 per hour. However, students under the age of 18 are entitled only to 70 per cent of that amount and people joining the workforce for the first time are entitled to 80 per cent of the full rate for the first year and 90 per cent for the second before moving to the full adult rate. Students should also be sure to claim back their tax-free allowance if pay from part-time work during the year has not exceeded the tax-free allowance set by the Revenue Commissioners.

Students will no doubt be keen to avail of any discounts that are available to them. An ISIC card enables holders to benefit from reductions at theatres and cinemas, and reduced rates on hotel and hostel accommodation, transportation, and many cultural and historic sites.

In addition, AIB says that its Oxygen card, which comes with a student account, offers a wide range of discounts throughout the year. Working during the vacation, particularly in another country, it can help to deepen the pocket as well as broaden the mind. In terms of student loans and other student borrowing incentives, the banks offer a wide variety of packages for those who want or need to borrow money during the academic year. Such packages might include a special reduced rate or interest-free overdraft, which will help students who are still waiting for their grant cheques to come through.

Officers at the Trinity College students' union say that, judging by their own experience and their data on the cost of student living, student debt is "rampant". One officer said that some of her friends have personal debts ranging from £100 to £4,000.

Irish-speaking students have a dedicated avenue to financial assistance not open to their English-speaking peers. They can apply for student scholarships or bursaries for third level education. The Department of Education offers 50 third level scholarships that are open only to students from the Gaeltacht or those who have attended an all-Irish second level school and have reached a certain minimum standard in the Leaving Certificate