The financing situation in third-level education has become unsustainable both from a social and an economic perspective, writes Dr Mary Meaney
Third-level education in Ireland is still predominantly the preserve of the better-off. Graduates belong to a privileged group as they have been given and have availed of an opportunity that is not available to everyone.
We have had much media comment in recent times on a number of important educational issues.
These issues include the student profile entering third-level, the possible reintroduction of fees for those full-time students attending third-level whose families can afford to pay and the continuing inequality of access to education that exists in our country.
In a report published recently by the Council of Directors of Institutes of Technology entitled "Some factors Affecting the Flow of Students to the Institutes of Technology to 2010", social class was identified as being the single biggest area of inequality in third-level education in Ireland today.
Some startling figures published in the most recent Clancy report show that the rates of admission to higher education in Dublin varies significantly by postal district, with admission rates slightly in excess of 77 per cent in Dublin 18 compared with an admission rate of 7 per cent in Ballyfermot.
I think everyone involved in education would agree that this situation is not sustainable from either a social or an economic perspective.
If the problem of dropout and underachievement is not addressed at all levels from pre-school to third-level, we cannot even begin to build a fair system and many of our young people will continue to lose out. The challenge of building an equitable system which is accessible to all, however, will incur a substantial financial cost.
I would then raise the question as to who should make the investment.
I don't think many would argue against the fact that the provision of world-class education at all levels in Ireland is essential from an economic perspective, and I would argue strongly that no reduction in spending on education should take place, even in times of financial difficulty.
Now is the time to continue to invest in education at all levels to ensure a speedy return to the days of the Celtic Tiger. If we truly wish to develop a knowledge-based society, it is essential that we increase the number of highly educated employees available to industry. These potential employees must be drawn from all social classes and from all age groups.
While I am convinced that increased investment is essential, I remain to be convinced that all the investment required should be provided directly from Government funding.
I believe it is time to consider the possibility of introducing some level of contribution by the student towards third-level education. I would advocate that any revenue generated in this way be ring-fenced and directly invested in widening access.
I am aware that the suggestion of the return of fees in any form is not popular, as was evident in a recent poll in The Irish Times when almost two-thirds of those surveyed said they would oppose such a move.
However, I would have to ask if the same level of opposition would exist if the alternative was to increase income tax? Should all taxpayers continue to contribute to a system where nearly 100 per cent of those in the higher social groupings attend third-level colleges, while only 20 per cent of those in the lowest social group have the opportunity to avail of the privilege?
I believe a change in the current funding model is essential. I also believe that change should incorporate some contribution towards third-level education from the student and should be based on the student's ability to pay. This contribution would not necessarily have to be made during the time spent in the third-level education system, but whatever model is introduced must ensure that no student is excluded from the system for financial reasons.
Are there options available which could achieve these aims?
One such system worth considering could be the introduction of government-backed student loans. A number of the Nordic countries operate such a system very successfully and have one of the highest participation rates in third-level in Europe.
The Australian Higher Education Contributions System is a well recognised system which was first introduced in 1989.
Tuition fees were introduced based on the average cost of teaching but students had the option of paying up-front at a discount, or could attend third-level education free and repay the tuition charge through a loan, with repayment collected by the income-tax authorities.
The system in the Netherlands is also worth considering as the level of student support is considered generous. The support consists of three categories, the basic grant, the supplementary grant and a student loan.
All students are eligible for the basic grant, while the supplementary grant is based on parental income. A student loan may also be availed of. It is interesting to note that both grants are initially made as a loan, which may be converted to a grant when students meet performance criteria.
The introduction of loan-based systems has been shown to be successful in generating income and in increasing access. The Australian experience has been very positive, with a widening of access by 40 per cent in a decade.
Problems, however, do exist, not least with the collection of outstanding loans, but I believe these can be overcome or at least maintained at a level where they can be tolerated.
In conclusion, I think it is timely for Ireland to investigate implementing an income-contingent loan scheme. The experience of other countries would suggest that implementation is the critical phase and should only be attempted if and when robust repayment and legal systems to ensure repayment are in place.
Therefore, the implementation phase must be taken into consideration when policy is formulated.
Have we reached this stage in Ireland? I think not yet would be the honest answer, but I believe the effort required to reach such a stage will certainly be worthwhile.
Dr Mary Meaney is director of the Institute of Technology Blanchardstown