Senator confirms son affected by medical student loans issue she raised

Senator Marie-Louise O’Donnell, who forced a Seanad vote this week on the financial plight faced by graduate medical students, has confirmed her son was one of those affected. But she said she didn’t want to refer to his case as it might “take the focus off the main issue”.

Ms O’Donnell first raised the issue in the Oireachtas joint committee on education last week, accusing the banks of “immoral” and “disgraceful” behaviour, and on Tuesday raised the matter on the order of business by proposing a debate in the Seanad that was defeated by just two votes.

Asked why she did not disclose on either occasion her son was one of those affected by the graduate loans, she replied: “Maybe I should have said it but the reason I didn’t is because I wanted to concentrate on the issue. That is the only reason.”

Ms O'Donnell, a DCU lecturer who was nominated to the Seanad by Taoiseach Enda Kenny in 2011, said she was "very private" about her family life. Of her son, she said: "I never speak about him as a visual aid; the issue is the visual aid."

In moving the motion for a Seanad debate on the matter, Ms O'Donnell accused Bank of Ireland of "financial thuggery", saying it was doubling the interest rate it charged young people taking graduate entry medicine courses.

“Some 65 per cent of all our young doctors have left the country not only to seek better conditions and better lives but also because they cannot repay these enormous loans.”

The issue has also been brought to the attention of TDs and Senators by a group of graduate entry medical (GEM) students who are seeking tax relief on their loans, which typically range from €60,000 to €100,000.

Incentive

A member of the lobby group, UCC final-year student Brian Doyle, said the measure would provide an incentive for Irish graduates to remain working in the Irish healthcare system as the relief could only be claimed on income taxed in the State. He said the scheme would also improve access to medical courses for young people from lower socioeconomic backgrounds whose parents could not afford to cover their loans.

Bank of Ireland is the only remaining provider of GEM loans, with AIB and Ulster Bank leaving the market due to the difficulties faced by students in meeting repayments, albeit they are still chasing debts.

Under Bank of Ireland’s terms, any GEM loan taken out between 2008 and 2013 was split – 4.1 per cent interest for the college years, converting to 9.7 per cent for the repayment years. From 2014 a straight 6.5 per cent rate applies for the life of the loans, with deferred payments until graduation.

Speaking yesterday, Ms O’Donnell defended her right to continue raising the issue in the Oireachtas: “It’s like saying someone who has a handicapped child should not alert the Senate to the plight of handicapped children.”