The government should give extra help to students who have severe financial problems "through no fault of their own", the Federation of University Students Unions (FUSU) has said.

The federation, set up as an alternative to USI, has called for an increase in the monies available to colleges to administer student hardship funds. The extra money could be used to help students "in financial crisis", the federation's submission on the grants system says.

"Students find themselves in this position due to tragedies such as bereavement, redundancy and illness. Through no fault of their own, they may find that they are either unable to complete their education or that they have to seek long hours of part-time employment." The federation also proposes that students who drop out of college should be given a second chance to avail of the student support schemes once five years have elapsed. "We consider this to be a fair and reasonable length of time for students who were not successful in their first attempt at college to be given a second chance".

The submission also calls for the establishment of a centralised student grant agency. The proposed agency would work with the Central Applications Authority (the CAO) to implement a new timetable for grant applications, so students would know by July 1st whether they had secured a grant for that year. Such an agency would also ensure students received their grant before the start of term, the federation argues. Late payments of grants by individual local authorities "remains a significant problem for students causing considerable hardship and uncertainty." VECs are also "consistently late" in paying grants because of their "cumbersome" procedures, the federation says.