Charlie McConalogue (Donegal North East, Fianna Fail) | Oireachtas source

I wish to raise the issue as to how it came to pass that the Department of Education and Skills signed off on and worked with Bank of Ireland on a punitive interest rate of 10.8% for postgraduate loans to be provided to postgraduate students. In last December's budget, the Government signed off on the abolition of postgraduate grants for new students entering third level from this year. At the time, Fianna Fáil stated this was a wrong and illogical decision from both a social and an economic point of view. One must ensure equality of access at both undergraduate or postgraduate level. It is vital to the future of the economy in respect of producing highly skilled graduates and of attracting high-skill jobs. According to the figures from the 2010-11 academic year, 34,740 people studied at postgraduate level, which constitutes an increase of 26% on the figures from five years previously. According to the most recent figures available, 6,720 people, out of more than 21,000 full-time postgraduate students, availed of a postgraduate grant last year. This constitutes an overall proportion of approximately 31% of postgraduate students who availed of and qualified for a maintenance grant and therefore for their fees as well.

Before the general election of 18 months ago, the current Minister for Education and Skills, Deputy Quinn, was seen posing for photographs with the Union of Students in Ireland, while promising not to increase third level registration fees.

In addition, he promised to row back on a previous increase of €500. If we fast-forward to after the general election, the party's spokesperson on education and now Minister for Education and Skills, instead of standing in a photograph with students, was standing in a photograph with the CEO of the largest bank in the country, encouraging students to take a loan from the bank at an interest rate of 10.8%. This is the Minister who went back on his previous promise not to increase registration fees and also abolished maintenance grants for post-graduate students meaning that they are now liable for fees and those who previously qualified for a maintenance grant are no longer eligible.

How did the Minister sign off on a grant from the Bank of Ireland that had a punitive interest rate of 10.8%? These are potential future customers of the bank whom any bank would be more than glad to have. Therefore one would expect they would offer very attractive rates to get them in. Instead the Minister for Education and Skills appeared in a photograph and encouraged students to take up loans at that rate. Several credit unions are offering education grants to undergraduates and postgraduates at interest rates of approximately 6%. How did the Minister end up agreeing with the banks and endorsing a rate of 10.8% being applied to students to be paid back when they leave college?

What happens if a student is refused a loan? Will the State provide some sort of guarantee that will ensure that students - even those without a strong credit rating - will have access to postgraduate education? Does the Minister of State consider this is a fair and viable option for students? Given the Government's record of abolishing the post-graduate grant for students, can the Minister of State give a guarantee today that the undergraduate grant will not be tampered with and will be maintained?

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