Tertiary students are likely to be given two more months to study a proposal which could leave them more than $300,000 in debt by graduation. The Student Financial Assistance Agency plans to postpone the deadline for consultation on its financial aid scheme to October under growing pressure from students and universities. The scheme, suggested in May, allows all students to apply for government loans, but they will have to pay an interest rate of 5.8 to 8.5 per cent a year. The existing rate is 2.5 per cent. The interest will be calculated from the time students secure the money. Wong Chi-wa, of the agency's financial aid section, said they had so far received submissions from the Hong Kong Baptist University and the Hong Kong University of Science and Technology. He said: 'Some university teachers and students have told us the three-month consultation period was too short. 'We have written to members of our joint committee on student finance suggesting the extension of the consultation period . . . We will formally announce the change next week if the members have no objection. We hope this will encourage more submissions.' Raymond Ho Man-kit, president of the New Asia College students' union at Chinese University, said he was pleased about the move. 'It's bad that they set the consultation period in summer vacation when students are off from school,' he said. He estimated the scheme would draw opposition because students would have to return more than $300,000 to the Government upon graduation.
