Time to bury the European loan scheme
“In a time of debt crisis and austerity measures, the EU should not be encouraging young people to take on more debt,” says a resolution passed by 47 national unions of students in Europe during the 64th Board Meeting of the European Students Union (ESU) held in Budapest from 26 to 28 April.
Risking a brain drain and increasing debt
Students clearly expressed their concerns about the loan scheme at the Board Meeting, a proposal they thought would be unfeasible and not reflecting the needs of students.
“We are appalled, that the proposal ignores the potential impact such a scheme can bring, such as raising the level of debt among young people or instigating a brain drain from less developed regions,” the resolution furthermore states.
European Social Fund helps
A recent example from Malta shows that it is in fact possible to use the structural funds to support the study grant system even further. On Tuesday 30 April, the Maltese government launched a new Master Scholarship scheme financed by the European Social Fund programme 2007 to 2013, hoping to improve access of diverse social groups to higher education and the skill-set of workers.
Specific thematic objectives have been set for the European Social Fund in relation to higher education as part of the EU2020 strategy, meaning that the funds can be used to improve the quality, efficiency and openness of tertiary and equivalent education with a view to increasing participation and attainment costs. This includes measures to increase participation of under-represented groups, improving graduates transition to the labour market, strengthening education infrastructures and complementing the Erasmus for All programme after 2014.
Look at Malta
“Malta is leading the way by setting an example of alternative measures that can be taken in order to improve access and mobility in higher education. Instead of offering loans, that only increase the debt level of students, it has decided to strengthen its scholarship system, by raising the budget to two million euros.”
“This example from Malta shows us that there is a potential within the EU funds to support the grant system for higher education much more than has been done,” says Karina Ufert, Chairperson of ESU.
