With the private colleges now being accepting into the CAO system you could say that the sector has come of age. The 1998 CAO handbook includes a total of 16 courses offered by LSB College, the American College and Portobello College. Other colleges anticipate that they will be included in the 1999 handbook.

The private colleges, which have developed as a direct result of the shortage of places on degree courses, are widely regarded as providing a valuable service. It is estimated that about 3,000 students are taking degree courses in the private sector. The fee-paying colleges offering degree programmes include the American College, the Dublin Business School, Griffith College, LSB College and Portobello College which are all Dublin-based.

When the private third-level colleges first came on the scene they offered degree courses validated by British universities. Many of these universities were former polytechnics which had been upgraded. Nowadays, though the colleges are introducing courses validated by the NCEA, the agency which validates certificate, diploma and degree courses in the RTCs. It is these courses which are being included in the CAO handbook. One of the benefits of the private colleges is that, by and large, the minimum third-level entry requirements - for a degree programme, two higher level Leaving Cert grade C3s and passes in four other subjects to include maths and English - still apply. Able youngsters, the colleges argue, who are unable to get university places because of the points race, now have the opportunity to obtain degrees.

"The private sector is still functioning at under-capacity," comments Francis Kelly, dean of admissions at the American College, Dublin. "However, that's likely to change now that we are in the CAO."

The fact that the Government has removed third-level full-time undergraduate fees in the state sector means that the fees charged for private courses look expensive. You can expect to pay up to £2,500 each year in the private sector. However, NCEA course fees qualify for 26 per cent tax remissions. The colleges meanwhile argue that they provide value for money. Portobello College estimates that it costs £35 per week to send a Dublin-based student to its college - less than sending him or her to an out-of-Dublin RTC.

THE Higher Education Colleges Association (HECA), which represents a number of private colleges, is lobbying the Government to provide free fees for students on NCEA courses in the private sector. Of "the big five" the Dublin Business School, LSB and Griffith College are members of HECA.

"It's wrong to treat students differently," argues Brian Gaffney, chairman of HECA. "For a large number of students it's an accident of the points system that they end up in the private sector." It's a reasonable argument, but commentators say that paying fees on private NCEA courses could become an EU issue and the Government could find itself funding any course validated by a European university.

One of the biggest issues for anyone embarking on a course at a private college is the viability of that college. In recent years there have been a number of spectacular belly-ups by private colleges which have left students high and dry. Bonding is the private sector's answer to the problem.

A NUMBER of colleges have established trust funds which will ensure the continuation of courses for either the academic year or for the full term of the programme. (See panel).

Where courses continue until the end of the year only, HECA colleges say that students will be able to transfer onto similar courses within the HECA group. But presumably this would apply only where similar courses exist.

HECA, according to its chairman, would like to see the development of a system in which students could transfer from the private sector into the public sector. "We have told the Department of Education that we would like a mechanism which, in the event of failure, would enable a task force to move in and help students as soon as possible," he says.

But a university source rejects the notion of automatic transfer of students in the event of a failure of a private college. "It's just not practical," says the source. "Universities wouldn't have the space. It's reasonable for the Government to expect the private colleges to arrange their own bonding." Many of the private colleges are long-established and highly reputable. However, the sector remains unregulated, so it's still a case of buyer beware."