Students of universities in England and Australia give their views on the advantages and disadvantages of the college fees loan schemes
AMELIA KNOTT
Social and political science graduate of Cambridge University. She graduated with a debt of £12,000
“When I went to university I couldn’t get a grant but I did qualify for a loan. I was adamant that I didn’t want to rely on my parents. Everyone qualifies for a certain loan and anything after that is means tested. I got a tuition-fee loan and a maintenance loan. The Cambridge colleges provided additional help as well. There are all sorts of grants and bursaries available. I got a book grant and rent was very low so it was manageable.
“I think it’s a good system. The loan you get is cheap money. You pay a very low rate of interest, and you’re only obliged to pay it back when you can afford it. I didn’t start repayments until I was earning £16,000 [€18,700] and the money started coming out of my wages.
“At university I had access to excellent facilities. University has an impact on your income. You generally graduate into better-paid jobs so why not pay something back for that? I know people who reached the £15,000 [€8,370] threshold but felt they couldn’t afford to repay the loan. They managed to get a bit of leeway on it.
“People think of students graduating with debt and picture young people being overburdened with massive repayments. Some are very keen to pay the loan back as soon as possible but I don’t think it’s worth doing that. This ticks over, the interest is very low, and if you can’t afford to repay it, you don’t have to.”
CLAIRE FLANAGAN
Consultant with the RM Consulting Group in Bendigo, Australia
“I lived in Kill, Co Kildare until I was six so I have some knowledge of the Irish education system. I always admired the fact that Ireland had no third-level fees but, as I understand it, the Irish system is much more restrictive in terms of access for poorer groups than the system here in Australia. “I graduated from Royal Melbourne Institute of Technology in 2003 with a degree in environmental engineering. I was left with a total debt of $28,000 [€15,630]; six years after graduation I still owe $22,000 [€12,281]. My husband, who is 31, had a total debt of $14,000 [€7,815] but he has cleared the entire sum.
“Do I like the loan scheme? Of course not. I would much rather spend the money on a good holiday. But I have to admit that you do not really notice the repayment as it comes straight out of your taxes. At my rate of repayment, I will probably be about 40 before I clear the debt.
“I earn about $50,000 [€27,913] as I work part time ; about $2,200 [€1,228] of this goes on the debt repayment so it is not too bad.
“That said, the debt burden has a real impact on your life choices , forcing you to stay in the workplace when perhaps you might prefer to spend more time with the kids. Friends complain it also gives you much less flexibility. You chase the jobs that will bring in the income instead of pursuing something you really love.”
DAVID BARROW
President of the National Union of Students in Australia
“By the time I graduate, my debt will be somewhere between $15,000 and $20,000 [€10,788-14,380]. Graduating with a debt like that makes you very job-focused. I’m studying media arts and production and international studies (France) at the University of Technology, Sydney. For me, university should be about the way you learn, rather than the substance of what you learn. Both are important, of course, but when you have student loans [the focus is on getting] the piece of paper that enables you to get a job in order to repay your student loan. It’s not ideal.
“Lots of people have no idea what they want to do after they graduate. Some need another few years of education or trying things out before they find their career. Having a debt puts a lot of pressure on people and can interfere with that. The debt can hang over you until you retire. Female science graduates who have more than one child are most likely to be in that situation. If you leave the country you don’t have to repay your loan so a lot of people do that and never come back.
“If you're worried about brain drain, the Higher Education Contributions Scheme is not the system to be introducing. It’s okay to be in debt for a house or a car. I just don’t think it’s right to have to get into that kind of debt for your education. Its daunting, graduating with thousands of dollars to repay. Im not looking forward to it.”
Compiled by Grainne Faller