Plans by the Government to introduce a loan scheme for third level education have been slammed by the Student’s Union at Letterkenny Institute of Technology.
Letterkenny IT has the highest number of recipients in the country receiving grants (71%).
If the grants model was abolished and replaced with loans, the poorest of the poor will be put into serious debt upon leaving college, according to the Students Union at Letterkenny IT.
Letterkenny IT Students Union President Dylan McGowan said “It’s absolutely ridiculous to consider loans, the loans model across the world has proven to be ineffective and provides large increases in tuition due lack of repayments”.
Introducing the ICL scheme in Ireland will take students to an initial debt of £20,000. The average increase in the UK from over 19 years, from £1000 to £9000 which is an average increase of £421 per year increase in tuition.
If Ireland starts at an initial €4000 fees per year this could increase at the exact same level as the UK, given our current emigration rates, the problems that arise with students not being able to pay the loans back, claimed Mr McGowan.
He added “The Introduction of Income Contingent Loan Scheme would be the current Government’s’ method of turning their backs to all students young and mature”.
“This is the first time a State funded 3rd Level Education is a recommended option by a group of external experts (Cassells report), however, the conversation continues to be fixated on loans.”
Student Union President McGowan “Do not mortgage the future of our primary, secondary and third level students in Ireland, gives the young people of Ireland a bright future, listen to the experts and publically fund our 3rd level education.”
The Minister for Education and Skills, along with the Joint Oireachtas Committee on Education and Skills, are considering three options on how 3rd level funding needs to be administered as a process in the future.
One of the most media publicised options is the “State funded” model of education in which essentially free education is possible through state funds and the general taxation of the public.
This model has been administered in Scandinavian countries such as Norway, Sweden and Finland, it is also administered in mainland European countries such a France, Germany and Belgium.
Mainland European countries provide low fees ranging at an initial €189 (France), which is essentially paid for by the student. Taxation has provided countries in Scandinavia a broad range of excellent services for all members of society, not only do students not have to pay large fees, they also receive free healthcare through the general taxation scheme. This has allowed the public to utilize education and health services without additional costs to the individual.
The 2nd model which is been highly publicised and is currently considered by the leading government party Fine Gael, is a 3rd Level Income Contingent Loans (ICL). The ICL method has been implemented in the UK, Australia, New Zealand and the USA. The objective is to offer students who can’t afford college tuition a form of “attend now and pay later scenario” for students where loan repayments for fees will take place when the graduate earns over a specific wage.
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