Ivana Bacik (Dublin Bay South, Labour)
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2625.To ask the Minister for Education and Skills the full year cost of abolishing the student contribution charge; the cost of maintaining the €1,000 reduction into 2023 2024 college year; the 2023-2024 cost of extending the other one-off reductions to thresholds and grants as provided for in 2022 2023, in tabular form; and if he will make a statement on the matter. [33011/24]

Patrick O'Donovan (Limerick County, Fine Gael)
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Under the free fees initiative (FFI), the State provides funding toward the tuition fee costs of eligible full time undergraduate higher education students with students paying the student contribution of €3,000 per annum. The State pays the student contribution (in full or part) on behalf of students who qualify under the student grant scheme administered by SUSI.

The data to allow for estimating the cost of removing the €3,000 contribution in full for 2024/25 is not yet available. However, it is anticipated that the estimated costs of applying such a student contribution reduction in 2024/25 would be of a similar magnitude to the 2023/24 estimate set out in the 2023 annual options paper published last year. On that basis it is estimated that the cost to the State of removing the student contribution in full for 2024/25 would be circa €255 million.

The estimated cost of the once off reduction in the student contribution in 2023/24 was circa €92m. This is the net cost after savings on the SUSI grant scheme are deducted.

There were no once off reductions to the student support grant thresholds and grants applied in 2022 or 2023. However, all non-adjacent maintenance rates were increased, maintenance grants for postgraduates were restored from September 2023 and a new student contribution grant of €500 was introduced for eligible students whose family income is between €62,000 and €100,000.

Ivana Bacik (Dublin Bay South, Labour)
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2626.To ask the Minister for Education and Skills the first year and the full year cost of permanently reducing the student contribution charge to €1,000 or €1,500 respectively, in tabular form; and if he will make a statement on the matter. [33012/24]

Patrick O'Donovan (Limerick County, Fine Gael)
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The Deputy will be aware that the Government approved reductions of up to €1,000 in the student contribution payable by free fees eligible undergraduate students for academic years 2022/23 and 2023/24.These once-off measures formed part of a wider cost of living support programme in Budgets 2023 and 2024.

Concomitantly with the student contribution reductions applied under Budget 2024, a new permanent student contribution grant of €500 was introduced. This new student contribution grant is available for eligible students whose families have incomes between €62,000 and €100,000. Higher SUSI supports are available for students whose family income is below €62,000.

The 2023 annual options paper, published in advance of Budget 2024, estimated the cost of the once-off €1,000 reduction in the student contribution at circa €92 million. This was the estimated net cost to the State after adjusting for savings that would accrue on the Student Grant Scheme administered by SUSI. It was further estimated that a €1,500 reduction would have cost in the region of €138 million.

Student data is not yet available for the 2024/25 academic year however, the potential costs of a €1,000 or €1,500 reduction in the student contribution for 2024/25 would be expected to be of a similar magnitude to those in 2023/24.

In advance of Budget 2025, I will be publishing a the 2024 options paper which will set out various possible measures to reduce the cost of attending higher education. I am doing this in order to facilitate public discussion on the various choices available to improve student supports. I will have regard to these options when making proposals in the context of budget discussions.