Jack Leahy
News Editor
Trinity College Dublin Provost Dr. Patrick Prendergast and Bank of Ireland Chief Executive Officer Richie Boucher today formally announced a loan scheme for current and new undergraduate students of the College.
The scheme, known as ‘TCD Finance’, will help students cover the costs of the student contribution charge, expected to rise incrementally from its current rate of €2,250 to €3,000 by 2015. The seven-year loan term will be split into two periods with different rates – an interest-only variable rate of 5% while the student attends College for years 1-4 and a variable rate of 9.7% payable for years 5-7 when the student graduates.
Welcoming the initiative, Provost Prendergast said: ‘Trinity is conscious of the difficulties faced by students and their families in financing a university education as a result of the current economic downturn, coupled with the increases in the cost of the Student Contribution Charge. This initiative is the first of its kind in third level and it is hoped to help students access a quality education at Trinity.’
Students who take the loan and their families will have to budget for a €100 per month repayment schedule for the duration of a four year degree, and the cost will increase to €156 per month upon the student’s graduation. The post-graduation payment could increase to as much as €220 per month with rises in the contribution charge. The same scheme is available to students on five-year degree programmes and it is understood that allowances can be made for a student availing of the scheme to pursue postgraduate education without disincentive arising from their debt.
Preliminary discussions about the scheme between College, the Students Union, and Bank of Ireland began just before Christmas at the initiative of College Treasurer Ian Matthews. Bank of Ireland currently hold a monopoly over rights to banking services on campus and the strong relationship between the Bank and both the College and the Union was a key factor in achieving the deal for reduced-interest student loans.
Any student of the College may apply, but the payment of the loan is subject to a payment guarantee from a parent or guardian of the applying student. According to rough calculations, students who use the loan to fund their entire education stand to pay a total €1,813 in interest at the current rate of student contribution. This number increases to an estimated €2,250 in accordance with planned increases.
Outgoing SU President Ryan Bartlett and Welfare Officer Louisa Miller negotiated the scheme on behalf of the SU. Bartlett praised the scheme’s attention to students who are ‘struggling’ with the cost of the student contribution charge, and praised it as ‘innovative’ and ‘creative’:
‘“This development will help a lot of students who were struggling with the annual increase in the Student Contribution Charge. The Students’ Union is delighted to have worked on an innovative scheme that will maintain access to Trinity College for current and prospective students. The partnership with Bank of Ireland has delivered a creative option to ease the problems of student financing.’
Bank of Ireland CEO Boucher added “The Development of ‘TCD Finance’ offering has been a true partnership with the team in Trinity College who have helped us understand the needs of students and strongly challenged us to come up with an offering to meet those needs”
It is hoped that the GeneSIS project to overhaul the student information system will be fully implemented in time to deliver contribution invoices to students electronically, though The University Times understands that contingency plans are in place in the event that implementation is further delayed.
Additional reporting by Fionn O’Dea
