Government plan to roll out new scheme writing off student loans

The government are reportedly examining new measures in order to write off student loans for certain students if they stay in Ireland to work after they graduate

The government are hoping to roll out a new scheme to write off student loans for certain students.

Ministers are examining schemes to encourage healthcare students to stay in Ireland to work after graduation, and one measure may be that they get their student loans written off, the Irish Independent has reported.

Healthcare students would get a new type of loan under a plan being examined by Higher Education Minister James Lawless, with part of the debt written off if they remain working in Ireland after graduation.

Mr Lawless said he had asked his officials to examine a scheme where the State would fund the education of a professional “who then gives some contribution back in terms of their employment or their skills to the stage post-graduation”.

The State already contributes to reducing the cost of undergraduate degrees. Irish and EU students do not have to pay undergraduate tuition fees but most have to pay an annual contribution fee of up to €2,500.

However, Graduate Entry Medicine (GEM) courses are not fully covered by the State, with costs coming in at between €15,000 and €20,000 a year to fund the four-year degree.

Non-EU students have to pay around €55,000 a year for these courses – with the Government subsidising fees for Irish and EU students.

Minister Lawless said that there was an opportunity to put a scheme in place to help with this expense.

“When you come out, we have ­covered your fees, we’ve given you a loan directly through the banks with a debt guarantee and now we’re saying, we want you to stick around and we’d like to work in the State and contribute to this jurisdiction,” he said.

“You don’t have to do it, but if you do, we’ll write off [a portion of the loan] for every year that you serve.”

“We have to do it in a way that’s fair and done consistently across the board,” he added.

“They call it a return of service. Your education is covered, but you make a contribution to the State.

“Other countries do it in different ways, but I’ve looked at a number of them and it’s something I would like to do.”

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