A SENIOR Trinity College professor has condemned Bank of Ireland for providing interest-free loans to students in traditional professions who are likely to become high earners, writes Mark Tighe.

The bank is targeting undergraduates in medicine, dentistry, pharmacology and veterinary, saying 0% interest loans to these students are a guaranteed investment.

“There is an extremely competitive market out there,” said Mary Brennan, a bank spokeswoman. “Studies show that 80% of people are unlikely to change banks. Students who become veterinarians or pharmacologists are strong business customers for us.”

Other students taking out Bank of Ireland loans are charged 9.2%.

Sean Barrett, economics professor at Trinity College, said preferential treatment by Bank of Ireland was subsidising traditional professions.

“Because courses like medicine have until recently restricted the numbers allowed into their courses, they have enhanced their earnings. It is not defensible economic practice. The bank needs to encourage those doing commerce, business, art or history as they are the real engine of the Celtic tiger, not these old-style restrictive professions.”

Ulster Bank offers larger loans — up to €15,000 more than the standard maximum — exclusively to students in nine “professional” subjects such as trainee solicitors and student doctors.

AIB said it occasionally engages in tactical pricing to recruit students but that “all students are equal in the eyes of the bank”.

Aoife McArdle, welfare officer at National College of Ireland student union, said: “ Just because someone does medicine doesn’t mean they will be good at repaying their loans.”

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