Right now in Ireland, graduates don't have to pay anything once they leave college. But that could change, especially if the government wants to make money from an Irish college graduates loan. New research has shown just how lucrative it could be if graduates paid a monthly fee of €150-€160 until they reach 33 on a “study now, pay later” loan scheme.
In countries like Australia, graduates have to pay back their tuition fees once they reach an income threshold of roughly €35,800 ($52,000AUD), a loan scheme called HECS (Higher Education Contribution Scheme). Until they earn enough, they don't need to make contributions to their debt, which is sometimes in the hundreds of thousands of dollars.
But would it be a good idea here in Ireland?
Results from a new study of how an income-based loan system would operate here will be presented to an Oireachtas committee today, as one of a number of higher education revenue options, reports the Irish Times.
The study by Professor Bruce Chapman, who created the HECS system in Oz, and Maynooth University academic Dr Aedín Doris found that it's the cheapest way for Ireland to fund a major expansion of third-level education.
Uh so what about people who skip the country to avoid paying their student debt? The report estimates that up to 10 per cent of graduates in Ireland would not repay their loans but Ireland could do what New Zealand does and demand a minimum annual contribution from graduates who leave the country. Coooool.
The report found that while a US-style college loan system is unsuitable for Ireland and there would be “significant repayment difficulties” for many graduates, a loan based on income with affordable repayments could be viable.
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A spokesman for Minister for Education Richard Bruton said “broad political consensus” would be needed before any big plans like these would be implemented.
College in Ireland is attainable for most school leavers, so could this change that greatly? We really hope not.
What do you think? Is it time Irish college students paid more for their tuition in order to fund higher education expansion?
Also read: Graduation Day: The 6 Things You Can Do After Finishing College
