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Dublin: 12 °C Monday 20 May, 2013

Coalition sees disagreements over student grants

While Labour TDs believe the change makes “perfect sense”, there is opposition from some Fine Gael TDs.

Image: Laura Hutton / Photocall Ireland

DISCUSSIONS ARE BEING held at Cabinet level over the broadening of the means testing arrangements for student grants but there are indications of tensions between the coalition’s two parties.

Labour TDs would like to see the government follow through with a Budget 2012 decision which would include the value of capital assets and savings in the means test.

“This makes perfect sense,” Aodhán Ó Ríordáin told Morning Ireland. “It is one of the only government schemes which doesn’t take account of the capital value of savings or assets. It led to a situation where an individual who had €270,000 in his bank account but was still eligible.”

The Dublin deputy said the €336 million spend on supporting students had to be more targeted at those who do not have assets or a tradition of education in their homes.

“They should not be fishing out of the same pond as those who have,” he continued. “There are far too many eligible students. This is about having a fair system.”

The Department of Education told TheJournal.ie that the broadening of the system is “an issue of equity and fairness”.

“At a time of diminishing resources we need to ensure that the valuable student grant system is aimed at those who need it most. And equally, those who can afford to pay to go to third level do.”

However, the spokesperson added that there would be no speculation about what will happen ahead of a Cabinet decision.

Children from households with an income below €39,875 qualify for a full grant and maintenance. It is understood that assets worth more than €750,000 will be included in the future means tests.

Although the Department said the broadening of means testing “is not aimed at a particular section of the community”, farmers have reacted negatively to the proposed changes.

Fine Gael TD John Deasy told RTÉ News that income cannot be imputed from assets, adding there would be trouble if Labour pursues the issue.

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Comments (36 Comments)

  • Grant system is a joke!! I have to work 25 + hours a week to keep myself in college did not receive a grant. Sick and tired of watching students getting grants then drop out after 1st year or fail every exam and never turn up for class such a wast of money they should be made pay every cent back of they don’t finish the course they intended to do!!!

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  • As a third year mature student, paying my own way, it annoys me to see students qualifying for grants who leave or can’t be bothered to turn up for lectures. They should be made to pay back their fees!

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  • I’m with Labour on this one.

    Our present grant system is a joke. I’m sick of watching students out on the piss with their grant money while I’ve to work 20 hours a week around my studies.

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    • Not all students are out on the piss, though. I can only speak for my own son, but he’s lucky if he can get out once a week, The rest of the time, he’s at home. He can’t afford to be out on the last 24/7. I do agree with means testing the grant; if daddy is in a high paying job and can well afford to pay his little darling’s college fees, then he should. The area I live in has plenty of kids who would love to go to college, but can’t afford to, which is a crying shame.

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    • Going on the piss is part of the problem though. In first year there were over 120 of us. Now in third year there are 27. Most of them dropped out because of laziness and a “I can’t be arsed attitude”. Most if those in year 1 and 2 had grants. What a waste of money!

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    • Those who genuinely need the grant aren’t out often, but those that are getting it when they don’t need it give a bad name to the system by living so comfortably.

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    • I don’t think the issue is that people are getting grants even when ‘daddy is in a well paid job’. I think they’re referring to people being means tested on their savings as well as their incomes. The parents income has always been means tested

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    • FG VS L another round of the phoney war. We fight we kiss we make up that’s what lovers do.Drama school.

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  • I agree that the current system is broke. Especially, considering those 10,000 students whom need it most are still waiting on their grant to be processed! Regarding drop outs, maybe they should be told to pay back the money they obtained of the grant, if they dropped out due to ‘disinterest’ or ‘laziness’!

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  • Holy crap. I’m with Labour on this one. And Fine Gael should realise that if it wants to be a party with more than 20% vote, it should not be pandering to rich farmers who use clever accounting to minimise income at the right time.

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    • Spot on Colin. My comment saying the same thing was deleted. Farmers obviously have more power than I realised.

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    • That’s right, sure it’s the farmers that are causing all this, they caused the the collapse of the economy too! Fool!

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    • Colin C 01/03/13 #

      That’s some jerky knee you have there, Tara.

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    • Hope it doesn’t jerk my foot in the direction of your behind Colin!

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    • Colin C 01/03/13 #

      Well, if it keeps it from your mouth, no harm.

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    • You’d know all about foot in mouth Colin, try taking it out every now and again. :)

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    • My son started his first year in college in September. Now, he was lucky enough to be accepted as part of the HEAR Scheme: http://www.accesscollege.ie/hear/index.php . His career guidance councellor was the one who encouraged him to apply for it. The college he attends had an orientation weekend for the 150 students who got in through this scheme…..and a lot of them were the children of farmers. Yet the kid who lives next door to me who had also applied for the same scheme was turned down. No-one’s saying that the farmers have caused all of this, but I’ll be damned if I’ve ever met a poor farmer. I await the avalanche of red thumbs.

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    • Colin C 01/03/13 #

      To be fair, as a rural dweller, I do know small farmers who struggle. In spite of what FootInMouth lady might think, I am not anti-farmer. But there is sonething incredibly unfair for the child of a PAYE parent on 40k being denied a grant while the child of a farmer with nearly a million in assets, who stands to inherit those assets, to be provided with a free 3rd level educaton at the PAYE parent’s expense. At the very least I believe there should be a lien on the assets which is realised on transfer. That would be far fairer. And 750k, as proposed is a very generous allowance.

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  • But look on the bright side…. IT’S FRIDAY! :)

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  • It tells us all we need to know about the priorities of the F.G. back benchers in that the first time we have heard a peep of protest from them about anything, is there jumping to the defence of third level grants for the sons and daughters of wealthy farmers.

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    • No ,jumping to the defence of their core vote.

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    • Inform me of how it is just wealthy farmers and not all business or asset owners?

      Do you believe that a builders cement mixer, van and other tools should be taken into account. And if this brings him over the means test should he sell his van or one of his other tools to send his child to school.

      This is what you want farmers to do. Land is only the same as a tool, with our the land they have no tools. So if they sell 10 acres of land for one child they are seriously reducing there income for the rest of there lives.

      Would you expect a business owner to downsize there premises in order to send there child to college, and this reducing their income from now on.

      Why don’t we bring the family home into a means test. Surely people can sell there family home and down size it when it comes to paying for their kids to go to college.

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    • Colin C 01/03/13 #

      There’s sone point in what you say, but if a business has assets of over 750k and not generating a real profit of over 40k, you’d have to ask why the business owner doesn’t sell it up and live off the interest on 750k instead of working. It’s too easy for accountants to be creative and conjure up losses and write offs at the right time. I have no issue with perhaps allowing the payment to be deferred, and a liwn put on assets until the business is successful enough to generate enough cash to pay the fees.

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    • Neasa, A farmer would not have to keep on selling off land to send children to college if the value of his or her assets fell below €750,000. Only savings and assets above €750,000 are to be taken into account, so it’s not the same as asking a builder to sell his tools etc.

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  • I take offence to your comment Stephen, I am not a farmer, my husband is a factory worker, we have no saving or assets unless you take into account the 20% of the house we own with the bank, it will be another 20 years before I regard this as an asset. Income is based on gross pay, not your disposable nett pay, so anyone on €40,000 will not get a full grant even though they never see that amount of money. Personally I think the grant should be assessed on nett pay, as the government has taken the difference between the gross and nett pay. I shouldn’t complain I was one of the many deluded that voted this should in.

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    • Peter Mc 01/03/13 #

      The grant will be still based on people’s pay but anyone who is self employed ( such as farmers) should have to declare huge savings or assets. Again this is a common sense approach and should have been implemented years ago.

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  • So , A lot of Fine Gael ministers and Td,s are Farmers and we wonder why they are protecting the wealthy farmers time after time while the Paye workers must pay for there kids to go on to 3rd level education.

    Time to wake up folks and see who is realy pulling the governments strings ?

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    • Michael, if a farmer is wealthy, his or her children won’t qualify for a grant, because they’ll be over the income threshold.

      There are arguments for considering business assets, including farms, when determining who gets a grant, but as the matter stands these are assessed on income and no “wealthy” families, farmers or otherwise currently qualify.

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  • This is a smoke screen from Labour to try and get back some sembleance of its reputation after the fiasco of Ruiari Quinn signing the pledge outside Trinity College before the last election. Fine Gael were in favour of a Graduation Tax and Labour were in favor of a reduction in the Reg fee…..Fine Gael will win out on this one

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  • I fully agree with Aodhán Ó Ríordáin on this particular issue.

    As a Higher Education Educator, I see the kinds of pressures visited on very hardworking students, as they try to balance academic/vocational responsibilites with financial survival. This often gets too difficult for them and sadly they withdraw from College.

    This outcome means that sometimes the most disadvantaged students are essentially forced out of the Higher Education System. This is unfair. Well done to Deputy Ó Ríordáin for his unequivocal stance on this issue.

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  • Danny, you say “They seem to think that anyone with savings are “The Wealthy”. The proposals are to take into account savings or assets over €750,000. Would you not consider someone who has over €750,000 in savings or assets to be wealthy?

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