The Department of Education is examining how the third-level system is funded in 12 OECD countries amid speculation that the Government could opt for a new student-loan scheme in the Republic.
Officials are also examining a new system whereby civil servants who receive free tuition fees at third-level would have to refund the cost of these fees if they leave the public service within a particular time.
Under the proposed loan system, students would not be charged fees initially, but would repay them after they have graduated. All students would repay some of the cost of their college tuition fees once they reached a particular income threshold.
A similar system pioneered in Australia has helped to widen access by all social classes/economic groups by 40 per cent in just over a decade.
It is understood that no approach has yet been made to the main banks to help provide low-cost loans under the new system, but this option may be explored in the new year.
Sources stress that the Minister for Education, Mr Dempsey, is only examining options at this stage and that all options are open.
There is some concern that the Australian system places a heavy burden on the state as it can take a long time before loans are repaid.
The Union of Students in Ireland claims there are student debts of over $8 million in Australia.
Its president, Mr Colm Jordan, said last night he was "dismayed and angered" that the Department was considering a loan option.
It is understood Mr Dempsey has asked the Paris-based OECD to give him an overview of the various models for third-level funding as he considers the possible reintroduction of fees for colleges.
A Department of Education report which will determine whether fees will return is expected to be published early in the new year.
The options under consideration include:
The full return of fees which were abolished by the Rainbow Coalition in 1995. Undergraduate students could expect to be charged at least €3,000 per year, but grant support for poorer students would be expanded;
- The possible involvement of banks in providing low-cost loans to students;
- A further increase in the student registration charge which was increased by almost 70 per cent earlier this year to €670;
- A new "guarantee" system whereby public servants must agree to remain in State employment for a particular period if they receive free tuition fees. Some "pay back" system for graduates who emigrate is being discussed.
The Independent Estimates Review Committee, a team of former senior civil servants, recommended a €1,000 registration charge last month. It said this was not unreasonable given the cost to the Exchequer of tuition fees.
This move was rebuffed by Mr Dempsey in Cabinet pending the outcome of the review of third- level funding.
Third-level sources say the Government could opt for a variety of options on fees. "We could, for example, have a huge increase in registration charges, some kind of loan scheme and vastly improved grants for students," said one.
In recent weeks, Mr Dempsey has sought additional information on the "learn now, pay later" Australian model known as Hecs, the Higher Education Contribution Scheme.
In a recent article in the Times Higher Education Supplement, a leading Australian commentator wrote: "Hecs is not an important political issue in Australia. It is generally seen to be fair, far preferable to any form of upfront fee, and a major contributor to the expansion of the university system."
The Government spends about €350 million on student support services annually; about €175 million of this is paid directly by the Exchequer to the third-level colleges in lieu of fees.
Mr Dempsey insists that any saving made from the return of fees would be "ring-fenced". The funds, he says, would be used to boost grants and other supports for less well-off students.