Institution graduating from
Hong Kong University Chinese University of
Hong Kong
Hong Kong Polytechnic:
Higher Diploma Diploma
119.
Percentage of monthly earnings
Existing
loan repayments
68 7%
de de
78 68
Total assistance
88 10%
9%
de de
8%
By comparing the benchmark entry points for different academic qualifications, I have also arrived at rough estimates of the extra earning power a student gets from his tertiary education. There is for example a difference of six points on the Government master pay scale between the entry point of a university graduate and that of a matriculant. By comparing this extra earning power with the average amount of assistance received, I have established that even if all the assistance was to be repaid within the stipulated period of five years the monthly repayments would be less than the extra earnings received, indicating that the benefits the students get from their tertiary education would be sufficient to allow them to repay all the assistance they had received:
Percentage of extra earnings
Existing
Institution graduating from
Hong Kong University
Chinese University of
Hong Kong
Hong Kong Polytechnic:
Higher Diploma
Diploma
loan repayments
20%
27%
42%
13%
Total assistance
30%
37%
58%
18%
The above findings suggest that repayments under an all loan scheme would not cause the majority of students serious problems or undue hardships. Thus the assumption made at the scheme's inception with regard to the students' ability to repay loan assistance which has never been subsequently examined would now seem to be invalid. This is further supported by the fact that over the years the amount of loan repayments that have had to be written off has been relatively low. I have therefore proposed to the Secretary, University and Polytechnic Grants Committee that a fresh review of the existing arrangements should be conducted to see if an all loan scheme could be
introduced.