Tánaiste Simon Harris has told the Fine Gael parliamentary party that no decision has been made to return student contribution fees to €3,000 for a full college year.
The Fine Gael leader said that any support for students will have to be part of the regular budget package.
On Sunday, Minister for Further and Higher Education James Lawless said that "as things stand" third level students will have to pay an extra €1,000 in fees this year compared to last year, which would see the contribution return to a figure of €3,000.
Mr Lawless said that last year's reduction was a part of a cost of living package that included other supports.
Mr Harris this evening pointed to the Programme for Government saying that student contribution fees will be reduced over the Government's lifetime to ease the financial burden on students and families.
He said that not having a separate cost of living package does not equate to not helping people with the cost of living.
Mr Lawless this evening told a meeting of his parliamentary party tonight that most of the student initiatives in previous years were funded from one-off measures which meant he had to start now from a low funding base.
He said he would be making the case across budget negotiations for the best possible outcome for students to make up these shortfalls, adding that he wanted to overhaul student supports and to address the cost of college for all.
Sinn Féin leader Mary Lou McDonald told the Dáil earlier this afternoon that parents need to know what student fees they will have to pay in September.
Ms McDonald said that the Government had no problem upping the pay of executives at bailed out banks and that of its own junior ministers, but it pleads the poor mouth when it comes to students.
Minister for Public Expenditure Jack Chambers said that any changes to fees would be made in a sustainable and permanent way.
He confirmed that Mr Lawless will engage with stakeholders and bring forward options.
The Government has to be cautious, Mr Chambers said, given the "uncertainty around us" and just like in previous years, final decisions will be taken in the next budget.
He added that ministers are aware of the pressure that families are under and they want to make public services more affordable.
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Behind the Story: The politics of student fees
Govt 'just doesn't get it' - Social Democrats
Social Democrats' acting leader Cian O'Callaghan claimed the Government is in "complete disarray" over third level fees and that any change is part of the budgetary process is a "spin" that "nobody is buying".
He said that Mr Chambers did not tell people during the general election campaign that a vote for Fianna Fáil and Fine Gael would be one to increase college fees.
"Your Government promised to continue to reduce student fees and you’re now threatening to break the promise and increase them by a whopping 50%," Mr O'Callaghan said.
"It’s hard to avoid the conclusion that the Government just doesn’t get it. You don’t get the immense pressure on students an families from soaring costs."
Households’ budgets rely on a promise to reduce student costs, Mr O'Callaghan added.
Mr Chambers responded, saying that budgetary planning cannot be dismissed as it is an "important part of how Government operates and how politics should operate".
He acknowledged the pressure that many families are under and decisions will then be made around affordability of public services, including further and higher education.
Mr Chambers said the Government is moving away from once-off measures towards "continued and permanent" changes.