The Minister for Education has said the issue of reintroducing college fees is off the agenda, following agreement on a €42m package aimed at assisting students from disadvantaged areas into third-level education.
Noel Dempsey said he expects the student package - which was backed by the Progressive Democrats - will benefit 56,000 students.
The decision ends a week of political controversy over the issue.
The Opposition has claimed that the announcement represented a climbdown by Mr Dempsey who had repeatedly said the better off should pay college fees.
The Labour leader Pat Rabbitte said the controversy raised serious questions about the competence of the Taoiseach Bertie Ahern and his cabinet to manage an economy in more difficult times.
Fine Gael said the issue had damaged the Minister.
