Debt mountain looms for university students
Cash-strapped students who seek government loans to get them through their tertiary studies may face debts of up to HK$192,000 at the end of their courses, a survey has found.
Some of those polled could not see themselves repaying the loans until they are in their 40s, the Hong Kong Federation of Youth Groups survey said.
The poll was conducted from late August to mid-September. Some 727 tertiary students who had applied for the loans were interviewed. The sampling error was plus or minus 1.9 per cent.
Students on publicly funded degrees racked up an average debt of HK$109,000 during their studies, the survey found. For those taking self-financed sub-degree or associate degree courses, average debt was HK$192,000.
Just 15 per cent of respondents believed they would be able to repay loans soon after they graduated. But 32.6 per cent said they would likely be able to clear the debt between the ages of 30 and 39. Some 5.8 per cent could not envisage being able to repay the money until they are in their 40s.
The respondents were also asked to rate their financial burden, with 7.31 the average on a scale of 0 to 10 - and 10 meaning the burden was very heavy.
About two-thirds of the students said they were working part-time to keep afloat. The average working hours were 33.8 per month, the survey found.
Some 6.7 per cent of respondents said they worked more than 81 hours a month.
About 14,600 first-year degree places are provided via eight publicly funded tertiary education institutions. In 2000-01, then chief executive Tung Chee-hwa vowed to give 60 per cent of secondary school leavers access to tertiary education, after which there was a significant rise in self-financed sub-degree courses. The Student Financial Assistance Agency offers four schemes to help students who are struggling.
