Thomas Pringle (Donegal, Independent)
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207. To ask the Minister for Education and Skills if he will ensure that an income contingent loan system is not put in place considering the effects this will have on students from rural counties who have to factor in high transport, accommodation and living costs; and if he will make a statement on the matter. [39859/16]

Richard Bruton (Dublin Bay North, Fine Gael)
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The Report of the Expert Group on Future Funding for Higher Education, published in July, identifies income-contingent loans as being one of the possible options for the future funding of the higher education sector. Other options include a predominantly State-funded system or a State-funded system supplemented with continuing student fees.

As committed to in the Programme for Government, I have referred the report to the Oireachtas Education Committee and this engagement will form part of the process for formulating a plan for the future funding of the sector.  I do not want to pre-empt the work of the Committee, however, I look forward to working with it as it analyses all of the options put forward by the Expert Group and hears the voice of all stakeholders.

While Cassells deals with the medium and long term funding needs of higher education we also have to consider the immediate challenges and in that context I am pleased that we placed a particular focus on this area in Budget 2017. I secured additional funding for the sector for the first time in recent years. In 2017 an additional €36.5 million will be made available with €160 million additional over the next three years. This will allow the sector keep pace with demographic increases and introduce targeted initiatives in areas such as disadvantage, skills, research and flexible learning. Among those who will benefit from the additional third level funding being made available are, students from disadvantaged backgrounds, lone parents and Travellers.

In Budget 2017 the Minister for Public Expenditure and Reform and I, announced a policy review with the aim of designing and implementing a sustainable and predictable multi-annual funding model for higher and further education and training involving increased Employer and Exchequer contributions from 2018. This review will be undertaken as part of the overall response to meeting the anticipated skills needs in the economy over the coming years, in line with the policy framework set out in the National Skills Strategy.

This review will include an analysis of the business case for enhanced investment in the higher and further education and training sectors.  In this context it will identify key elements of the new funding model and of the expected impacts including those on employers. The review will include consultation with stakeholders.

The policy review will be published by the end of April 2017, and will complement the ongoing work by the Oireachtas Committee in relation to the Cassells report.