Carol Nolan (Offaly, Sinn Fein)
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I thank the witnesses for their contributions. I remain totally unconvinced that an income contingent loan system is a means to address the financial crisis in the higher education system. I share the view of many others that such a system would impact on under-represented groups and children who grow up in disadvantage. It would exacerbate the cycle of disadvantage and I do not see any merit in the proposal.

Will the witnesses provide an overview of exactly how much it would cost the Government to operate an income contingent loan scheme for the next ten years? What level of State investment would be required? Will they advise further as to whether the proposed model would be a Government backed scheme or special purpose vehicle or would it be privatised, as Senator Boylan indicated? If a Government backed scheme were implemented and the default rate was higher than anticipated, what options would be available? Would student numbers have to be cut or fees increased and would unprofitable loans be sold off to private investors? How would the Government retain control of the terms and conditions attached to loans?

If a special purpose vehicle were established, what conditions would be required to ensure this vehicle remained off balance sheet? How would the State retain control of overall policy? Would it be possible for the special purpose vehicle to remain in State ownership, rather than being privatised? Would the terms and conditions attaching to loans be set by the Government and, if so, how would this be achieved?

A paper should be drawn up to answer the questions I have asked because the proposal gives rise to many questions. It is impossible for the joint committee to make a recommendation in light of the many questions that the model for student loans generates. We have not been given sufficient clarity to even consider the income contingent loan model further.