Clara Li finds university students have mixed feelings towards the impending

University students who relied on government loans to pay for their tuition fees may need to borrow money from commercial banks, if a government decision to contract its Non-means Tested Loan Scheme (NLS) to such banks is to be implemented.

In February, the Students Financial Assistance Agency, a government agency, commissioned local consulting firm ACA Consulting to undertake the study of this issue. The findings are expected to be released early next month.

The NLS loan is the type of financial assistance any university student can get regardless of his financial situation. It was introduced in 1997 to complement the Local Student Finance Scheme (LSFS), a means-tested loan based on a student's financial needs.

According to figures as of March 31 from the agency, nearly 15,000 students had applied for the loan, accounting for about 12 per cent of the local-student population.

Under the new scheme, more people will be eligible for the student-loan programme, which has the sanction of the Education and Manpower Bureau.

From the 2000/01 academic year, working adults and part-time students will also be able to apply for the loan, boosting the total number eligible for it to 700,000, from the present 200,000.

Raymond Chiu, deputy controller of the Students Financial Assistance Agency, the government organisation in charge of the student-loan schemes, said 'it is an initiative to improve the quality and efficiency of our service'.