Grants may have increased but so, too, have college capitation fees. Louise Holden reports on student finances

THERE hasn't been a lot of good news for students on the finance front this year.

A delay in the processing of grant application forms by the Department of Education means that students will receive their grants later than usual.

As a result, many who are eligible for grants will still have to pay the €670 registration fee. It's a worrying development for students.

"If students do not have proof that they are receiving a grant, they will have to pay the €670 college registration fee regardless of their parents income," says Colm Jordan, president of the Union of Students in Ireland.

"It beggars belief that the Department of Education and Science have not taken out advertisements in the national media to highlight this."

On announcing a capitation fee hike of 69 per cent this year, the Minister for Education and Science, Mr Dempsey, was quick to address the fears of students from low income families with an assurance that they would not have to pay these fees. According to Jordan, that assurance is now meaningless.

"This makes a mockery of the department's lofty claim in their press release when the increase was announced that 'students who are eligible for means-tested student support will have the €670 charge paid on their behalf by local authorities and VECs'.

"When the students have proof that they will be receiving a grant, the money is refunded, but in some cases this can take several months. For example, one mother phoned us up stating that in a similar situation last year, it was February before she was refunded the money."

When the grants arrive, they will be slightly increased and will benefit more students, however. The Department of Education has given an increase of 32 per cent in the income threshold for special rate maintenance grant, or top-up, for disadvantaged students this year and all grants have been increased by 5 per cent.

This means that students qualifying for the special rate will receive a top up of €596 bringing their grant to €1,600 if they live within 15 miles of college. Those living further than 15 miles from college will receive an extra €1,490, resulting in a grant of €4,000.

The expansion of the income threshold for the special rate grant from €9,190 to €9,396 will double the number of students qualifying for the top up to 7,000, according to the department.

These developments are unlikely to ease the pressure on students. DCU's estimates put the annual cost of living away from home at €7,080, or €7,750 for non-grant holders. The shortfall for students on the special rate grant is €4,000.

The Irish Auctioneers and Valuers Institute (IAVI) members have recorded a 79 per cent increase in Dublin rents in the last three years. Around the country accommodation hikes well ahead of inflation have been the norm. Meanwhile, maintenance grant increases have barely been in line with inflation.

The Department of Education faces €50 million in spending cuts so the most vocal and powerful of lobbyists are unlikely to secure any further help for students this year.