3rd Level Debt
- Nov 30, 2016
- 2 min read
In Ireland we’re in a relatively privileged position that many of us are able to leave college after three or four years with relatively little student debt. The most recent statistics show that in the US, there is currently 1.3 Trillion dollars owed in student debt. The average debt for a US student graduating in 2016 is nearly $40,000. This number has been increasing steadily every year. The UK is even worse, with the average student leaving University with a debt of £44,000. Two thirds of these loans are expected never to be paid off.
Since 1996, third level tuition in Ireland has been completely government funded, with an annual registration fee that currently stands at €3000. While not nearly as costly as the systems we’ve seen in the UK and US it is still relatively expensive by European standards. Most universities in Scandinavia are completely government funded, while many others throughout Europe charge less than €1000 annually (and often provide grants to cover these fee).
One of the options in July’s Cassells Reports for 3rd level funding was a student loan scheme. This loan would cover tuition fees up front, with the student not expected to pay them back until they enter the workforce. However, it has been estimated that if this scheme is ever introduced, it could lead to students leaving college with debts of up to €20,000. This is a hard-sell to students and families who already feel like they are stretched very thinly financially. Rather than leveling the playing field for entry to college by postponing fee payment, it is possible this increased, delayed cost could act as a possible deterrent. This idea is only one of three possibilities proposed by the Cassells Report. So far, this appears to be the least popular option. It is unlikely to be supported by the public. It remains to be seen if it will make it any further than this initial proposal stage.
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