Students will be asked to pay college fees of €4,000 a year for arts degrees and up to €8,000 for medicine and veterinary courses, under plans now being finalised in the Department of Education, writes Seán Flynn,Education Editor.
The Department's review on educational disadvantage, commissioned by the Minister for Education, Mr Dempsey, is due to go to Cabinet next month. It is expected to recommend three different categories of payment for degrees, diploma and certificate courses.
The disclosure that fees could reach this level is expected to exacerbate tensions on the issue within the Government parties. The Progressive Democrats would like to retain the free-fees regime, while several Fianna Fáil backbenchers and senators are also unhappy with the Dempsey plan.
Mr Dempsey has still to decide the income threshold above which fees will be reintroduced. But sources say it will be set at about €110,000. One said: "We are talking about very comfortable people who can afford very exotic holidays a couple of times per year."
Under the Department's plans fees would be divided as follows:
The top payment of up to €8,000 would be for prestige courses such as medicine, veterinary, architecture and law.
A middle payment of about €4,000 would be charged for all arts and humanities courses and nursing. This would include the standard arts, science and business degrees.
A lower payment would be levied for courses in the 13 institutes of technology (IOT) and in Dublin Institute of Technology, where the cost of some courses is much lower than in universities. In general, the IOT sector is also more successful in attracting students from all social backgrounds. Lower fees would also be charged for cert and diploma courses.
It is also understood that the review will not make a recommendation on the introduction of a student loan scheme. There has been intense speculation that Mr Dempsey favours an Australian-style "study now, pay later" scheme, where graduates repay the cost of loans.
Sources say that while Mr Dempsey remains keen on a loans scheme, it will not be considered until later in the year, in the context of an overall review of third-level funding. The current review, the sources say, will focus closely on alleviating educational disadvantage.
The Department of Finance is also thought to support a loans scheme modelled on some kind of partnership with the banks or other private interests, since this would have no impact on public borrowing.
The new fees structure which the Department hopes to have in place for the new academic term in September is intended to reflect the cost of the course and the earning power of those who graduate in its particular discipline.
At present, the State spends about €370 million on student supports. About €240 million of this covers fees, which were abolished in 1995.
Mr Dempsey has said he hopes to divert the funds generated by fees to widening access to third-level education for poorer income groups.
The Department of Education review draws on a series of economic models prepared by the ESRI to show how the return of fees could help to widen access.
It is unlikely to herald a review of the Higher Education Grants Scheme, amid concern that the current one has been widely abused by farmers and the self-employed. Discussions have taken place between the Department of Education and the Department of Social, Community and Family Affairs on the issue. Ideally, the Department of Education would like Social Welfare to take over responsibility for the scheme but agreement on a new structure has not been possible.