News
Dec 3, 2016

TCDSU Warn of Dangers of Loan Schemes in Submission to Education Committee

The submission comes ahead of the union's appearance before the Oireachtas Education and Skills Committee on December 8th.

Dominic McGrathDeputy Editor
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Sam McAllister for The University Times

In their submission to the Oireachtas Education and Skills Committee, Trinity College Dublin Students’ Union (TCDSU) have warned of the dangers of fee increases, as well as calling for alternatives to an income-contingent loan scheme to fund higher education.

The submission states that a loan scheme would “increase for cost of education for students and work to discourage access to education in the long run”.

Loan schemes, the submission states, would put an “unfair burden on students forcing them into debt at a vulnerable and expensive time of their lives post-graduation”. The union also expresses concern about the impact a loan scheme might have on part-time students, mature students and students receiving financial support to go to college.

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The submission comes ahead of the union’s appearance before the committee on December 8th, where TCDSU will appear alongside the Union of Students in Ireland (USI), a well as a number of other groups including Siptu and the employers’ group Ibec.

The submission also questions the impact an income-contingent loan scheme might have on the current grant system for students: “While SUSI is far from perfect, it has helped several thousand students. There are many students who are above the income threshold for SUSI who also need to subsidise their education, and their needs also should be addressed.”

Speaking to The University Times by email, President of TCDSU, Kieran McNulty, said it was important to get the “student voice” heard at the committee.

“I’m delighted that we get to appear and present directly the voice of our students when the future of our education funding is decided”, he said. McNulty will represent TCDSU at the committee next week.

The six-page submission also expresses concerns that an income-contingent loan scheme might encourage emigration among students to avoid repayment, and suggests that the introduction of a loan scheme might raise a “temptation” to Irish universities to slowly raise the level of fees charged to students.

The report sets out seven recommendations to improve access to third-level education, including a review of SUSI and the extension of grants to part-time students.

The Education and Skills Committee have already heard presentations from the heads of Irish universities and institutes of technology. The committee will be responsible for developing a new model for the funding of higher education. The presentations, in November, saw the Irish University Association (IUA) express their support for an income-contingent loan scheme, while the Technological Higher Education Association (THEA) called for publicly funded education for all students up to level seven.

Echoing many of the comments made to the committee in recent weeks, TCDSU emphasise the value of higher education to Irish society: “It is the duty of the Government to ensure that this benefit continues to exist and to ensure that there is equitable access to education.”

Speaking to The University Times following THEA’s presentation to the committee, the President of Limerick Institute of Technology (LIT), Vincent Cunnane, said: “We were trying to nuance the Cassells report. We’re not saying that there’s a single way of dealing with these issues. What we’re saying is, you need to look at a variety of ways of dealing with students.”

“We’re not trying to open up issues between the universities and the institutes of technology”, he added.

Last month, the Chair of the government’s higher education funding working group, Peter Cassells, appeared before the committee. The working group published a report in July that outlined three options for a new funding model for higher education – the abolition of the student contribution and the creation of a predominantly state-funded system, the continuation of the current student contribution charge coupled with increased state investment, and the introduction of an income-contingent loan system.

In his presentation to the committee, however, Cassells suggested that the committee could end up with a “hybrid” funding model that includes elements from all three options.

The report, commonly referred to as the Cassells report, has been used since July by student groups and trade unions to argue for the viability of publicly funded education. In his presentation to the committee, Cassells said that each option in the group’s report had “strengths and weaknesses”. Publicly funded education, he said, would require significant tax increases, while an income-contingent loan scheme would raise concerns over “debt aversion” among families from disadvantaged backgrounds and would also require significant borrowing by the state to set up.

TCDSU are mandated to oppose an increase in the student fee, following a vote at a meeting of the union’s council last December.

Over the last few months McNulty has been meeting with members of the Oireachtas Education and Skills, including former Tanaiste Joan Burton and Fianna Fáil education spokesperson, Thomas Byrne. He also met with the chair of the committee, Fianna Fáil’s Fiona O’Loughlin.

The Minister for Education and Skills, Richard Bruton, has refused to state if the government has a preference on a higher education funding model. Responding to questions from The University Times at an event hosted by Trinity Young Fine Gael in Trinity last month, Bruton said: “I have decided not to say this is what we’re advocating. We need to listen to the others.”

The committee, which contains three Fine Gael representatives, will find a “consensus” on a new funding model, according to Bruton. Bruton said he hoped that a new funding model could be agreed upon before the next budget, appearing to contradict the timeline set out in the government’s Action Plan for Education, which was published in September.

Fianna Fáil have yet to outline a preference for a funding model for higher education. However, speaking to The University Times in September, Byrne were “cautious” about the impact of an income-contingent loan scheme.

In October, between 8,000 and 10,000 students, trade union representatives and interest group members marched to protest against the lack of funding that has provided to higher education in recent years and to urge the Oireachtas Education and Skills Committee to consider a public funding model.

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