Last month’s launch of the TCD Finance scheme.
Jack Leahy
News Editor
Following reports earlier this week that Bank of Ireland were to extend the ‘TCD Finance’ loan scheme to Mary Immaculate College in Limerick and DCU, The University Times has learned that the Bank is set to announce that they are to introduce a similar loan product at a further 21 participating institutions. The scheme is a product of the Bank alone and is not linked to Public-Private Partnerships, as previously suggested. There are still many financial resources available, such as personal loans from financial institutions similar to Money Trumpet, that could offer personal financing to students who are interested in them.
The full list of Bank of Ireland College Finance affiliates is as follows ; Athlone IT, Carlow IT, Cork IT, DCU, IADT, Dundalk IT, GMIT, IT Blanchardstown, Letterkenny IT, Limerick IT, IT Sligo, IT Tallaght, IT Tralee, Mary Immaculate College, The National College of Art and Design, NUI Galway, NUI Maynooth, St Angela’s College, St. Patricks College, Trinity, University College Cork, University College Dublin, University of Limerick and Waterford IT. The University Times understands that Bank of Ireland is open to making the product available to students of other institutions in the future.
While Trinity College Dublin Students Union was heavily involved in negotiating the original scheme UT also understands that many students’ unions were not consulted when the bank sought to extend the scheme to other institutions. The Bank has been answering the queries of sabbatical officers – some of whom have only learned of the scheme’s availability in their College in the last day – but has not been proactive in initiating dialogue.
When breaking the news earlier this year that the loan scheme was to be pioneered in Trinity, Trinity News reported its relation to the government’s investigation of Public-Private Partnerships as a method of third-level funding through student loans. However, the scheme being rolled out to students across the country is understood to be a consumer product and is not an initiative of or partnership with the government, the Higher Education Authority, individual universities, or any other higher education body or institution.
Speaking to The University Times, Union of Students in Ireland President John Logue expressed the organisation’s ‘serious concerns’ as to the long-term implications that the scheme’s nation-wide availability would have on third-level funding:
‘In the short-term, this loan scheme may help students and families to cope with the financial burden that the ever-increasing student contribution charge is placing on them. However, USI has serious concerns about the long-term effects that this scheme may have on the higher education sector.
‘The scheme could lead to a steep increase in fees, as it gives the Government the impression that finance is available to cope with such increases. If this were to occur, it would not be long before we find ourselves in a comparable situation to the U.S., where graduates are burdened with massive debt upon leaving college.
‘USI is also concerned with how Bank of Ireland seems to be implementing these schemes in some colleges, with little or no effort being made to consult with Students’ Unions.
‘There are also serious discrepancies between BOI’s literature on the scheme and what individual Students’ Unions believe was agreed in their colleges. For example, while some Students’ Unions were assured that the loans would be reviewed on a year-to-year basis with consideration for increases in the Student Contribution Charge, Bank of Ireland’s literature would suggest that the loan is entered into for the full period of the undergraduate degree and that the terms are fixed, thus leaving the student to find alternative means of financing any increase in the SCC.
‘USI will have more to say on this matter after further consultation with Students’ Unions.’
The Bank of Ireland College Finance scheme is different to a standard personal loan as it aims to ensure that low repayments are made throughout the duration of study, and further affordable repayments upon graduation. Loan repayments are to be made in monthly installments of €100 over the first four years, at a variable rate of 5.1% per year. Upon graduation, this is increased to €155.24 per month at the standard Graduate loan variable rate of interest (this currently stands at 9.7% APR) for a further three years. The student may apply to have the loan transferred to their name upon graduation. The typical total cost of credit is set to stand at €1,388.32. Rates will not differ between colleges but repayment costs will increase in line with increases in the charge.
Discussions for the Trinity scheme began shortly before Christmas at the initiation of College Treasurer Ian Matthews. Bank of Ireland has consistently had a strong relationship with both the College and the Students Union and this has helped the successful introduction of the loan product. The loan seeks to ease the financial burden on students and their families with regards to paying the Student Contribution Charge.
The loan will be available to both existing undergraduates and new entrants, however it is not available to postgraduate students. Parents or guardians of full time undergraduate students at the participating colleges may apply for the loan, which is only available to cover the cost of the student contribution charge, and not further education expenses. The Student Contribution Charge currently stands at €2,250, however it is expected to have risen to €3,000 by the year 2015.
The maximum length of the loan is 8 years for a five year course and 7 years for a four year course. However over the course of the loan it is possible to pay more per month to reduce the overall cost and there are no fees if the loan is repaid early. All charges must be applied for up front, and partial charges will not be facilitated by the bank.
While the finance scheme has been welcomed by TCDSU, there is as yet no system for students unsupported by parents, as the USI says it will continue to fight for full equality of access in all third level institutions.
Additional reporting by Nicole O’Sullivan
