'We are unable to get a full grant unless our family is on social security assistance and are also charged interest immediately after we have taken out loans, while government-funded students are not charged any until after they have graduated,' said Wong Siu-yan, a fresh graduate of City University's associate degree programme in leisure and tourism management. She has taken out loans of more than $40,000 from the Student Financial Assistance Agency (SFAA) over the past two years to support her studies.

'Sub-degree programmes are supposed to be a channel for students to further their educational opportunities, but there is such a big gap between the assistance for us and university students, some of whom squander their money on entertainment,' she said.

Students this week vented their frustrations at a meeting with CityU council chairman Sir Gordon Wu Ying-sheung, who criticised the government for failing to provideenough support for sub-degree education.

SFAA's deputy controller Peter Ho Kui-cheung said financial assistance for tertiary students was covered by two separate schemes. The government-funded group was entitled to full or partial grants and loans that covered both tuition and living expenses, whereas non-government-funded students were only entitled to full grants and eligible for loans covering solely tuition. But he added that the policy was under review.

Wanda Lau Woon-yee, an executive committee member of CityU Staff Association, said many sub-degree students suffered a double blow because of high fees and limited financial assistance.

'The government should broaden the assistance as soon as possible,' she said.

Non-government-funded sub-degree programmes charge between $30,000 and more than $50,000, compared with $42,000 for UGC-funded degree programmes.

CityU and Polytechnic University are turning an increasing number of their sub-degree programmes into self-financed ones, following the government's decision last year to withdraw their subsidies. PolyU's Community College plans to raise its self-financed intake in September to 1,800 from the current 1,600.

CityU's new community college, planned for 2008, will have a capacity of 6,000.

Jessie Lau Ping-yan, a first-year CityU advanced degree student in bilingual communication studies, who has taken out a loan of more than $30,000, said: 'The government has stressed equality but it is being unfair by having separate policies for us and government-funded students.

'We are faced with double exploitation, having to pay higher fees and cannot use the health or dental services on campus.'

Education minister Arthur Li Kwok-cheung has pledged to spend money saved from the withdrawal of the subsidy for sub-degree programmes on student financial assistance.

So Ying-lun, programme director at PolyU Community College, said the government should act quickly to offer more assistance to students.