Loan scheme to help 79,000 extra students
More students will benefit from a government loan scheme from the next academic year.
The aim is to encourage people to continue education at tertiary and post-secondary levels.
The administration estimates the loan requirement for the expansion of the non-means-tested scheme will be about $61 million.
It will benefit about 79,000 extra students.
Under the plan, three more groups of students will be eligible: Students taking publicly funded programmes at technician level at the Institute of Vocational Education of the Vocational Training Council; Those pursuing self-financing, local award-bearing programmes offered by publicly-funded institutions; and Part-time students pursuing local award-bearing programmes at Shue Yan College.
The loan ceiling is capped at the level of the tuition fees payable.
In a paper to be discussed at next Friday's Finance Committee, the Education and Manpower Bureau said borrowers would have to pay interest on the loans at the Government's so-called 'no-gain-no-loss rate'.
The prevailing no-gain-no-loss interest rate is 6.5 per cent per year.
Members were told that the loan would be repaid within 10 years of the student's graduation or ending studies.