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WEDNESDAY, JANUARY 16, 1980
SPECIAL FUND TO BE SET UP TO FINANCE STUDENT LOANS
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THE LEGISLATIVE COUNCIL THIS AFTERNOON APPROVED THE ESTABLISHMENT OF A STUDENT LOAN FUND FROM FEBRUARY 1, 1980 TO FINANCE LOANS TO NEEDY STUDENTS AT THE TWO UNIVERSITIES, THE HONG KONG POLYTECHNIC, AND POST SECONDARY COLLEGES.
UNDER THIS SCHEME, LOANS WILL ALSO BE AVAILABLE TO STUDENTS IN AN EDUCATIONAL INSTITUTION APPROVED BY THE FINANCE COMMITTEE OF THE COUNCIL. THE FUND WILL BE ADMINISTERED BY THE FINANCIAL SECRETARY.
AT PRESENT ALL STUDENT LOANS, EXCEPT THOSE GRANTED TO TRAINEES AT THE THREE COLLEGES OF EDUCATION, ARE CHARGED TO THE DEVELOPMENT LOAN FUND.
THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE EXPLAINING THE REASONS FOR THE CREATION OF A SEPARATE LOAN FUND FOR STUDENTS SAID AN INITIAL ALLOCATION OF $15 MILLION FROM THE DEVELOPMENT LOAN FUND WAS APPROVED IN 1969 TO SET UP THE LOAN SCHEME AT THE TWO UNIVERSITIES. IT WAS ENVISAGED THAT IT WOULD BE POSSIBLE IN DUE COURSE TO MEET EXPENDITURE ON LOANS ALMOST ENTIRELY FROM REPAYMENTS.
HOWEVER THE FUND HAD NOT BEEN REVOLVING BECAUSE OF SIGNIFICANT INCREASES IN THE NUMBERS OF STUDENTS ELIGIBLE TO APPLY FOR LOANS 1 599 IN 1969 COMPARED WITH 11 881 IN 1979.
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FURTHERMORE, HE ADDED, THE MAXIMUM LOAN WAS INCREASED FROM TIME TO TIME TO KEEP PACE WITH INCREASES IN THE COST OF LIVING. FOR UNIVERSITY STUDENTS, IT HAD RISEN FROM $4 000 A YEAR IN 1969 TO $5 400 A YEAR IN 1979.
HE ALSO DISCLOSED THAT NEARLY $182 MILLION HAD BEEN ALLOCATED FOR LOANS AND FURTHER ALLOCATIONS, BRINGING THIS TOTAL TO MORE THAN $218 MILLION, WOULD BE SOUGHT FOR THE COMING FINANCIAL YEAR.
SIR PHILIP SAID THE CONTINUING DEPLETION OF THE RESOURCES OF THE DEVELOPMENT LOAN FUND FOR STUDENT LOANS HAD BEEN CAUSING HIM CONCERN FOR SOME TIME, AND HE THOUGHT THE LOANS SHOULD MORE APPROPRIATELY BE FUNDED SEPARATELY AS A CLEARLY IDENTIFIABLE ELEMENT WITHIN THE TOTAL FINANCIAL COMMITMENT TO EDUCATION AT THE TERTIARY LEVEL.
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