MINISTER FOR Education Ruairí Quinn favours an increase in the €2,000 student contribution charge rather than the return of college fees, but he has still to make a final decision on the issue.
At Cabinet discussions this week on budget cutbacks, education sources say Mr Quinn was inclined towards a series of increases in the student contribution charge over several years.
But other options, including the return of college fees averaging €5,000 per year and a student loan/graduate tax scheme, remain under consideration.
Mr Quinn is under intense pressure from Labour backbenchers and from party grassroots on the issue. He is also under pressure from the Union of Students in Ireland (USI), whose “Stop Fees” march is expected to attract more than 20,000 to Dublin tomorrow.
In the run-up to the election, Mr Quinn signed a USI pledge that fees would not return. But he has refused to dismiss their reintroduction since taking office.
The Minister is pursuing a sustainable funding base for the higher-education sector which needs an extra €500 million annually to cope with a projected 30 per cent increase in admissions over the next 10 years.
In September the student contribution charge (formerly the student registration charge) increased from €1,500 to €2,000. While the increase drew strong protests from students and parents, it generated only about €55 million in gross additional revenue for colleges.
The State spends about €1.1 billion a year on higher education.
Two years ago a report prepared for the last government conceded that increases in the student contribution charge would “raise affordability issues for some students”.
It also stated that higher student fees would affect participation levels at third level. This, it noted, raised “significant wider social and economic issues”.
Official figures show that in 2008 28 per cent of full-time undergraduates came from families with gross incomes of more than €80,000. Some 15 per cent came from families with a gross income of more than €100,000.
Sources also say that post-graduate grants will be “scaled back” in the budget but they will not be abolished. More than 3,500 students qualify for research grants to a maximum of about €5,000. Many also qualify for maintenance grants of up to €6,000. Eligibility is based on the income of their parents even if the student is over 21. This applies unless the applicant has been out of full-time education for three years or more.
The National Parents council (post primary) said is was “dismayed that the reintroduction of college fees” is back on the table. Jackie O’Callaghan said it was “disheartening” that a reforming education minister like Mr Quinn was considering the return of fees.