The Minister for Education has confirmed he has discussed with the Minister for Social, Community and Family Affairs the issue of paying third-level student grants through the latter Department's computerised payments system.
Mr Martin told RTE yesterday he had put the idea, developed in his Department in July, to his colleague Mr Ahern, and officials from both Departments were working on it.
The Revenue Commissioners were not yet involved because the Department of Social, Community and Family Affairs has considerable experience of its own in means-testing. It also had one of Europe's most advanced computerised welfare payments system, he said.
The Union of Students in Ireland president, Mr Colman Byrne, said USI had campaigned for a central grants office.
He went on: "Since the grants schemes are drafted by the Department of Education and the function of the local authorities is simply an administrative one (i.e. implementing the scheme in their area following strict rules), it would make far more sense to have one central body responsible for processing and paying grants. After all, when students apply for their place in college, they do so to a Central Applications Office.
"It was always our opinion that there was a need to streamline the system and create one efficient agency that can deal with grant-processing and payment."
The Fine Gael education spokesman, Mr Richard Bruton, said it was "disappointing to learn that the Minister will not have a new system of grants administration in place for two years yet.
"If it takes this long to improve the administration of the scheme, how long must we wait before this Minister undertakes real reform to make access to support for higher education more equitable?"