Seanad debates

Thursday, 19 February 2015

Commencement Matters

Student Assistance Fund

10:30 am

Photo of Averil PowerAveril Power (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I welcome the Minister to the House. I have tabled this debate to highlight the need for the Department to provide extra funding for the student assistance fund in light of the fact many colleges have already exhausted their entire allocation for the 2014-15 academic year. As the Minister is aware, the purpose of the student assistance fund is to give the colleges discretionary funding to help students facing severe financial hardship. It assists students who miss out on a maintenance grant, perhaps because their parents are barely over the threshold, but are struggling financially and cannot afford their college fees, or, for example, those students who are under 23 and are assessed on their parents' income but have very good reasons why they cannot live at home, such as being estranged from their parents due to a violent situation at home. This fund gives the colleges discretion to assist such students. It also helps those who face unexpected hardship during the year that puts their academic progress at risk. For many students, as I know from my time as a student union officer in Trinity College, the assistance they get from this fund is the only thing that saves them from having to drop out of college. However, while it is a vital scheme, funding has been cut significantly in recent years. It was €8 million in 2013 and €6.6 million in the current academic year of 2014-15, which is totally insufficient, particularly given that students are now under more financial pressure than in the past. To take the issue of rent, which is a significant cost for those who are studying away from home, rents have risen by over 10% nationally and by 17% in Dublin in the past 12 months alone, so more and more students are struggling financially.

The Union of Students in Ireland commissioned a survey which found that many colleges had already exhausted their entire allocation from the student assistance fund by the end of December - so, just a few months into the college year, the entire allocation was gone. This was the case in NUI Maynooth, Trinity College, UCC, Athlone IT, IT Tallaght, IT Tralee, Letterkenny IT and the Mater Dei Institute. There were another seven third level institutions that had already used 80% or more of their allocation by the end of December.

Essentially, what this means is that students with serious financial difficulties will be denied the support they need. As I said, some will end up dropping out of college and missing out on a third level education, in many cases because they do not have just a few hundred euro to pay their rent or meet other costs.The overall long-term cost, not only to the individual but also to the State, of someone missing out on a third level education is obviously many multiples of that. It is such a false economy and it is incredibly unfair that people are missing out on an education as a result of a lack of what is a relatively small amount of money. I have raised this matter in order to ask the Minister if she will provide, as was the case in previous years, both a top-up for the student assistance fund for the 2014-15 academic year and a greater overall allocation for the fund for the 2015-16 academic year.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
Link to this: Individually | In context | Oireachtas source

I thank Senator Power for raising this important matter, which I have been discussing with the president of the USI in recent weeks. The objective of the student assistance fund, which was established in 1994, is to assist, in a sensitive and compassionate manner, students who might otherwise, as a result of financial reasons, suffer severe hardship or be unable to continue with their third level studies. The fund is an important source of support for students who experience hardship while in college. It is a component of the third level access measure, which is managed on behalf of my Department by the Higher Education Authority, HEA. That measure comprises two sub-priorities, namely, the student assistance fund and the fund for students with disabilities. The management of the third level access measure rests with the HEA and the allocation of funding for the sub-priorities in a particular year is a matter for the authority. The overall allocation to the HEA in respect of the third level access measure was in excess of €15 million for the 2013-14 and 2014-15 academic years.

The student access fund is allocated annually to universities, institutes of technology, colleges of education and a number of other higher education institutions. Information on the fund is available through access officers in third level institutions. This year the HEA plans to commission an independent review of policy, guidelines and practice in respect of the student assistance fund. We know that practice varies widely between the institutions and, therefore, I am of the opinion that the review is very welcome. The overall education budget has been fully committed for this year. However, I will continue to liaise with the USI and the HEA to explore how students in need can best be supported.

Photo of Averil PowerAveril Power (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am very disappointed that the overall budget for this year has been fully committed. I accept that the Minister budgeted on the basis of a smaller amount of money for this year but there is a desperate need for her to find funding from somewhere. She should go back to the Department of Finance and seek further funds. If a student drops out of college and signs on for social welfare, then the Government is obliged to find money in order to cater for his or her needs. If the difference between someone remaining in college or dropping out is a few hundred euro, no one can help them because the money from the only fund by means of which assistance can be provided has already been spent. As already stated, this is such a false economy.

I accept that the Minister has been given limited resources with which to work but I am of the view that she must approach the Minister for Finance and fight for more money in respect of this fund. Students only returned to or began their college courses in September or October. If all the funding was gone by the end of December, then that is a signal that students are experiencing increasing financial distress. It is wrong that someone who is in a position of serious financial hardship might be told in March that nothing can be done for him or her because all of the funding was spent by the end of December.

The Minister indicated that the overall pot of funding for the 2013-14 and 2014-15 academic years was the same. As she correctly pointed out, however, that money is shared between the fund for students with disabilities and the student assistance fund. The reason funding for the latter has been reduced is because there has been greater demand in respect of the former. Higher education institutions have a statutory obligation to provide support for students with disabilities. This means that funding for such students must come first, which is only right.

Photo of Paddy BurkePaddy Burke (Fine Gael)
Link to this: Individually | In context | Oireachtas source

A question please, Senator.

Photo of Averil PowerAveril Power (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Of course, we should of course provide to students with disabilities the support they need. However, this should not be done at the expense of those who are experiencing serious financial hardship of a kind that could, as the Minister acknowledged, lead to their dropping out of college. There is a need to ring-fence moneys for the student assistance fund and to ensure that said fund is not obliged to compete with that for students with disabilities. Such competition is incredibly unfair. I accept that the Minister is working within the limited resources available to her. In that context, I plead with her to seek further funding from the Minister for Finance.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
Link to this: Individually | In context | Oireachtas source

The way in which this has been set up means that the moneys for both funds emanate from the same source. As stated, I am engaging with both the USI and the HEA in respect of this matter. The amount of money in the pot for this year is fixed. I am willing to explore with both organisations ways in which we might make progress on this matter, particularly in the context of the next academic year. I appreciate that the level of demand relating to the fund always exceeds the amount of money available in any year. I will continue to explore the position with the two organisations concerned.

Sitting suspended at 11.15 a.m. and resumed at noon.