Grants cover only 25% of the cost of going to college, says think-tank

COLLEGE grants for disadvantaged students are now covering as little as a quarter of the cost of higher education, a Government think-tank has found. An Economic and Social Research Institute (ESRI) study compared the real value of student support grants from 1973 to 2005, and found they have only increased nominally in terms of spending power for students.

While the payment to a student living away from home in 2006 was around €3,000, the €400 payable in 1973 was the equivalent of €2,750 in 2006 terms.

The Department of Education has not increased grant rates over the last two years despite rising third level costs, although the cost to taxpayers is expected to increase significantly this year because of rising numbers of eligible students.

The ESRI was asked by the Higher Education Authority (HEA) to examine the costs of college and the means by which students finance their education, either through state grants, work or parental support.

Based on a 2003-2004 survey of student spending, the 2008 costs of going to college were found to average almost €900 a month for students living away from home, but there were wide variations depending on a students' social background.

When averaged out over a year, the full state grant payment was found to meet just 25% of the costs of mature students.

However, up to three-quarters of the costs were met for those living independently of their parents and who received the special top-up grant which has increased more significantly in recent years..

"Overall, it is clear that over time, grant support has been covering fewer students and grant levels have been covering less of the cost of participating in college," the ESRI report said.

"Grant payments typically meet between just one-quarter and one-third of average expenditure levels of disadvantaged students."

The ESRI said the living standards of students trying to rely solely on state grants has deteriorated because, although they have kept pace with inflation, they have not taken account of factors such as rents which rose by 21% between 2004 and 2008.

Union of Students in Ireland president Peter Mannion said that, while much of the data has become outdated in the recession, the ESRI report raises important issues.

The report highlighted the impact of the changed economic environment on student income, with fewer part-time job opportunities available and parental ability to support their children affected by unemployment and lowered pay in many sectors.

HEA chairman Michael Kelly said the evidence of how grants are covering fewer students and less of the cost of higher education was most significant, and that further debate is needed on how to support students with children.