Written answers

Thursday, 16 July 2015

Department of Education and Skills

Student Grant Scheme Reform

Photo of Michelle MulherinMichelle Mulherin (Mayo, Fine Gael)
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684. To ask the Minister for Education and Skills her plans to change the student grant scheme so that mortgage repayments on the family home and the total number of dependent children in a family are considered in the means test for grant eligibility, due to the reality that these are substantial outgoings from family income, and too many families are paying the high standard variable rate on their home mortgage repayments; and if she will make a statement on the matter. [30317/15]

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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Student grant applications are means tested on gross income from all sources earned inside and outside the State within a specified reference period.

The means test arrangements of the Student Grant Scheme are applied nationally on the same basis to both employed and self-employed applicants. Gross income before the deduction of income tax or universal social charge, is assessed with certain specified social welfare and health service executive payments excluded.

Therefore, the assessment of income from the same starting point is deemed to be fair and reasonable because this approach eliminates any distortion which might arise from different spending decisions in different households. No allowances can be made for outgoings i.e. mortgage repayments, utilities, travel, medical expenses etc.

The Student Grant Scheme provides for higher income thresholds for larger families. In addition to this, further increases in the income thresholds are provided for where additional family members are attending further and higher education at the same time.

In addition to the supports under the Student Grant Scheme, students in third-level institutions experiencing exceptional financial need can apply for support under the Student Assistance Fund. This Fund assists students, in a sensitive and compassionate manner, who might otherwise be unable to continue their third level studies due to their financial circumstances. Information on the fund is available through the Access Officer in the third level institution attended. This fund is administered on a confidential, discretionary basis.

In the interest of equity, I have no plans to change the current arrangement.

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