A DISCUSSION paper setting out the options on third-level fees will be circulated by Minister for Education Batt O'Keeffe among his Cabinet colleagues within weeks. There are strong indications that the 40,000-plus students who enrol at third level this September will be liable for the new charges - even though they will not actually be introduced until September 2010.
It is also expected that some form of deferred payment scheme for students - rather than a return to fees paid by parents - will form the main thrust of the Minister's proposals.
However, sources stress that discussions on the final shape of the new regime are ongoing with the Department of Finance.
The Minister has still to finalise his proposals or make a final recommendation.
Education sources signalled yesterday that a student-loan scheme - rather than some form of graduate tax - is among the main policy options.
It is widely expected that those on "very high" salaries will be asked to pay fees.
Mr O'Keeffe has repeatedly said that those who can afford to pay fees should be asked to make a contribution.
He has also signalled that low- and middle-income earners may not be liable for major new charges.
While circulating an options paper to Cabinet colleagues, the Minister will not reveal his own preferred option until the Cabinet discusses the issue.
Mr O'Keeffe may face opposition from Green Party Ministers.
This decision to circulate the options paper is designed to give ministerial colleagues an opportunity to inform themselves about the various options before a Cabinet decision is taken.
There is increasing nervousness in Cabinet about any plan which would impose significant new charges on families in the run-in to the June local and European elections.
Mr O'Keeffe has said the new student charges will apply from September 2010. They will not apply to students already in college.
However, there is still confusion about the position of the 40,000 students due to enter third level this September.
A ministerial spokesman said the Government could impose the new charge on these students from September of next year if it so decides as there was no legal difficulty.
He said: "In relation to students who enter college this September, where there is to be a policy change in relation to the introduction of a student contribution before then, our legal advice is that we'd be deemed to have given them adequate notice."
However, the Union of Students in Ireland (USI) said it had obtained legal advice saying it could challenge a move to impose fees on students already in the third-level system.
USI president Shane Kelly said there "would be legal consequences" if students enrolling in college this year were "penalised" in their second year.
A spokesman for Green Party leader John Gormley said third-level fees were "not in the programme for government and we are opposed".
However, he said the Green Party in government was prepared to listen to what Mr O'Keeffe had to say and engage in discussions with their coalition partners.
Minister for Health Mary Harney gave what was interpreted as qualified support for reopening the debate on third-level fees in August of last year.
At that time Mr O'Keeffe's predecessor as minister for education Mary Hanafin, said she would prefer not to see a return to fees.
However, in recent months Ms Hanafin has signalled her support for a new funding model for third-level institutions.