The most substantial form of assistance so far provided has been an interest-free loan scheme for students at the Baptist College.
This scheme was introduced in recognition of the factors that required the College to raise its fees to a level that students from less well-off families might find difficulty in paying. It was not intended to cover the full cost of fees but was based on the difference between the former fee level and the new one. When Shue Yan College was conferred registration under the Ordinance, there was the explicit understanding that the change in the College's status carried no obligation on the Government to make available any kind of financial assistance either to the College or to the student tody through the provision of loans.
8.7
The Government recognises that until the number of places at the universities and Polytechnic can be expanded further than is envisaged under the present programme, students will continue to seek places in the post-secondary colleges, and it is desirable that such courses should maintain reasonable standards and that students who are suitable academically should not be excluded on the grounds of inability to pay fees. Accordingly, the Government will continue the limited scheme of assistance for needy students with the unavoidably high tuition fees that a post-secondary college must charge if it is to maintain existing facilities. Such arrangements would indirectly help a college to maintain existing standards of service. They would be regarded as removing any necessity to repeat the ad hoc arrangements that have operated with the Baptist College in the past.
8.8
The Government will consider, in consultation with the college authorities, the future arrangements governing this scheme of assistance. As the colleges will remain private institutions, it would not be appropriate for the Government to introduce tight controls over their management and financial planning. However, as the number of students in need of assistance is related to the size of the student population, any Government assistance would not be designed to increase the total number of students provided for by the post-secondary colleges above the present level (a combined population on diploma courses at both colleges of about 4,500). It would be necessary for a college whose students were receiving assistance to provide the Government with justification for any further revision of tuition fee levels that became necessary, in order to ensure that the cost to public funds of the scheme of assistance was kept down while still achieving the objective of preventing students from having to
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