Noel Ahern (Dublin North West, Fianna Fail)
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Question 667: To ask the Minister for Education and Science the position regarding third level maintenance grants; if there were changes of third level maintenance grants in Budget 2010 or in the estimates; if third level maintenance grants will be reduced and by how much; if any proposed reductions will take place in the second half of the current academic year 2009-2010 or the next academic year 2010-2011; and if he will make a statement with particular reference to person who is awaiting the second part of grant for 2009-2010. [4889/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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As announced in Budget 2010, a reduction of 5% is being applied to the rates of student grants and scholarships. This reduction is being implemented in respect of all grant-holders from January 2010. Changes in the rates of student grant are considered as part of the annual Budget process each year and rates become effective on a financial, rather than an academic year basis.

The 2nd and 3rd instalments of the grant for the 2009/10 academic year will be reduced to reflect this decision. If an individual has applied for a grant for the 2009/10 academic year but has not yet received a 1st instalment, this will be paid at the higher rate.

From September 2010, as announced in the Budget, all new applicants who are in receipt of the Back to Education Allowance for all schemes and the VTOS allowances for those pursuing PLC courses, will be ineligible for student maintenance grants. The cost of the student services charge and any fees payable to colleges will continue to be met, for eligible students, by the Exchequer on their behalf. They should apply to their assessing authority to have their eligibility assessed.

Students currently in receipt of the BTEA or VTOS allowances and the maintenance grant will continue to be eligible for both payments for the duration of their current course, provided they continue to meet the terms and conditions of the scheme. Students progressing to a new course, with effect from 2010/11, will no longer be eligible for student maintenance grants but can apply for assistance towards the cost of the student services charge and any fees payable.

When I announced details of the student maintenance grant schemes for the 2009/2010 academic year I also gave notice that, with effect from the start of the 2010/11 academic year, further changes will be introduced. These include: Some social welfare allowances, including the Back to Education Allowance which had been excluded in the means-testing process, will be included as reckonable income in assessing eligibility for student grants; The income tax adjustment for farm stock relief will be disregarded in calculating reckonable income for means-testing purposes; The residency requirement in the State for grant eligibility will be increased from one year to three out of the past five years for the student - a move that is in line with provisions already outlined in the Student Support Bill; The duration of the break in studies required for re-entry as an independently-assessed mature student will be increased from one year to three years.