On Thursday 24th November, Dr. Aedín Doris, an economist and labour market expert in the Department of Economics, Finance and Accounting at Maynooth University, provided expert testimony to the Oireachtas Committee on Education and Skills.
Dr. Doris was responsible for much of the analysis of student loans in the Expert Group on Future Funding for Higher Education report recently presented to the government and addressed the Committee on the role of income contingent loans in financing Higher Education in Ireland as part of its consideration of the report ahead of making recommendations to Education Minister Richard Bruton.
Dr Doris told the committee that income-contingent loans differed crucially from regular loans in that graduates only begin to repay debts when their income reaches a certain threshold. “It is debt that has to be repaid only if the graduate can afford it,” she said. “Repayments fall to zero in months when earnings are low or zero. Thus, there is no possibility of hardship due to loan repayments.”
Among the other issues raised by TDs and senators was whether a loan scheme would encourage emigration in order to avoid repayment, leaving the State carrying the financial burden. Dr Doris said there was very little evidence of the impact on loans of outward migration, while international research showed that the factors that determined whether emigrants returned home were mostly related to family circumstances.