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Students’ Unions Slam Student Loan Proposal Cian Carton News Editor
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oth UCD Students’ Union (UCDSU) and the Union of Students in Ireland (USI) have criticised the recent Student Loan Proposal scheme by Ógra Fianna Fáil. The situation has emerged at a time when a government expert group held its final consultation meeting on the financing of higher education in Ireland. Ógra Fianna Fáil has called for the introduction of a loan based system to help fund university education. The proposal centres on two optional loan based schemes to assist students and address the two main issues it sees in the higher education system, “equality of access and a sustainable funding model.” The first idea is that an annual fee of €5,000 would be introduced for each year of college. The sum would be provided as a loan and could be deferred and be repaid on an income-contingent basis. This would allow students to attend college without having to pay any fees immediately, or during the course of their studies. They have noted that “this model proposes a modest increase on upfront fees of an additional €2000 but defers the cost of the entire fee €5000 over a number of years.”
Pg. 6 Features
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The repayment of the loan would begin at a rate of 2.75% when a student starts earning more than €30,000 per year. At this rate, the repayment would be €825 per annum. The percentage to be repaid would then increase by .25% for every extra €5,000 in pre-tax income that a graduate receives. The highest rate of repayment would be a maximum tax of 5% on any salary above €75,000. They claim that, based on “current participation rates and the money raised by the current student contribution charge, this scheme would end up raising approximately €300 million a year for 3rd level institutions.” In order to assist students during their time in college, Ógra Fianna Fáil has also proposed the provision of maintenance loans, up to a maximum of €10,000 per year. As part of their campaign, Ógra Fianna Fáil presented their proposal outside the gates of Trinity College Dublin (TCD) on Friday, 23rd October. It resulted in USI issuing a press release about the proposals. Kevin Donoghue, president of USI, said that “federal 3rd level loan system[s] did not work in the UK or the USA. It would be impractical and illogical to introduce an already broken loan scheme to Ireland.” He also attacked the nature of the
scheme itself. “For the majority of students that struggle to find a well-paid job straight out of college, this debt can be overwhelmingly intimidating – like a huge bet they lost. Unsubsidised loans will even build interest while you’re enrolled. For many young people, the lack of financial security will deter even more students from applying to college.” When asked to comment on the proposal, Marcus O’Halloran, President of UCDSU, stated that they are “proposing a model with a high failure rate. It’s not worked to the benefit of students in the UK or the US.” He said that UCDSU “currently support a stance on free education following a referendum in 2012. We’d only change our stance following another student referendum. As mandates only last for three years, it will expire at a later date this year.” O’Halloran said that UCDSU had not been contacted by any students on “supporting anything other than free third level education.” He also stressed that “in terms of the student contribution charge, UCDSU have publicly fought to keep that down.” With a general election imminent, O’Halloran linked in UCDSU’s efforts on the topic with student voters. He commented that “the onus is on us now to make
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Fianna Fáil’s Student Loan Proposals
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Trish McGrath from UCDSVP at the society’s annual Homeless Week Sleepout.
sure that these students are registered to vote nationally. As such, we’re looking to run a mass voter registration drive in November following the success of last year’s effort.” No dates for the event have yet been announced. While students’ unions and political youth groups are voicing their opinions, the subject is also being carefully considered by the government. Last year, Jan O’Sullivan, Minister for Education and Skills, set up an expert group to report on higher education funding. The Expert Group on Future Funding for Higher Education is being led by Peter Cassells, former general secretary of the Irish Congress of Trades Unions. One of the members of the group is UCD’s Dr Sara Cantillon, who lectures in the School of Equality Studies. She was also the former Head of UCD School of Social Justice from 2005-2008. The group is due to present its final report to the Minister by the end of this year. As part of the formation of the report, the group has been conducting consultation forums on the issue. Their final consultation before they issue their report on the matter was held on Friday, 30th October. Continued on Page 4.
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