Education constituency lawmaker Chu Kwok-keung has called for extending the student loan repayment period to 20 years and lowering the interest rate to less than 1 percent given that the economy is currently not doing very well.
His suggestions came after the government announced on Thursday to increase the tuition fees of UGC-funded undergraduate, taught graduate and research graduate programs by 5.5 percent for three consecutive years.
The new fee levels will stand at HK$44,500 in 2025-26, HK$47,000 in 2026-27, and HK$49,500 in 2027-28.
Speaking on a radio program on Friday, Chu said students who are not subsidized by the funding of the University Grants Committee are the most affected by the fee adjustments.
He then suggested extending the loan repayment period to 20 years and lowering the interest rate to less than 1 percent to alleviate students’ financial burdens.
He also recommended the government relaxes the requirement of achieving the 18 percent cost recovery rate given the current economic outlook, saying this goal can be further discussed in the future.
Ng Po-shing, student guidance consultant of Hok Yau Club, agreed it is necessary for the government to increase the tuition fees and the range is within expectations.
Ng noted that students who apply for the non-means-tested loans will be under greater pressure since the interest rates will be adjusted in accordance with external elements. This means the amount of repayment might skyrocket if students borrow when the rates are low but later climb up.
He therefore suggested lowering and fixing the interest rates for the non-means-tested loans. Yet, he disagreed on extending the repayment period and said the current 15-year time bar is sufficient.
He also called on universities to provide different allowances for students to go on exchange trips or purchase more learning equipment. He stressed that the resources shouldn’t be axed since higher education is a societal investment.
Hong Kong United Times丨香港聯合時報丨HKUT 