XN000022-1987-04-30 — Page 6

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THURSDAY, APRIL 30, 1987

THE CHANGES HAVE BEEN INTRODUCED TO ENSURE THAT THE POLICY OBJECTIVE OF THE SCHEME IS ACHIEVED AS ECONOMICALLY AS POSSIBLE. GOVERNMENT RESOURCES AS A WHOLE ARE LIMITED AND MUST BE USED WHERE THE NEED IS THE GREATEST.

TERTIARY EDUCATION IS ALREADY HEAVILY SUBSIDISED AND SINCE TERTIARY EDUCATION ENABLES A STUDENT UPON GRADUATION TO INCREASE HIS EARNING POWER, IT IS REASONABLE FOR HIM TO CONTRIBUTE MORE TOWARDS THE COST OF HIS TERTIARY EDUCATION.

AN INTEREST CHARGE HAD BEEN SET SINCE A TOTALLY INTEREST FREE LOAN REPRESENTS A FURTHER SUBSIDY FOR THE STUDENT AND THE RATE OF 2.5 PER CENT HAD BEEN ADOPTED AFTER CAREFUL CONSIDERATION OF THE REPAYMENT CAPACITY OF STUDENTS AFTER GRADUATION.

IT IS ESTIMATED THAT WITH THE IMPLEMENTATION OF THE CHANGES THE INCREASE IN MONTHLY REPAYMENT FOR ALMOST ALL STUDENTS WOULD BE LESS THAN $80. THE SPOKESMAN STRESSED THAT INTEREST WOULD ONLY ACCRUE FROM THE DATE ON WHICH REPAYMENT BEGINS WHICH IS NORMALLY AFTER GRADUATION.

+THE REPAYMENT PERIOD REMAINS UNCHANGED AT FIVE YEARS, BUT IT CAN BE EXTENDED IN HARDSHIP CASES WHICH WILL CONTINUE TO BE CONSIDERED ON THE INDIVIDUAL MERITS OF EACH CASE,+ HE ADDED.

NOTE TO EDITORS:

IN ORDER TO ILLUSTRATE THE EFFECT OF THESE CHANGES ON THE MONTHLY REPAYMENT, TWO EXAMPLES BASED ON FICTITIOUS ANNUAL DISPOSAL INCOME HAVE BEEN WORKED OUT AS FOLLOWS. A BACKGROUND BRIEF ON THE ANNUAL DISPOSAL INCOME APPORTIONMENT WILL BE AVAILABLE FROM THE GIS DUTY OFFICER ON REQUEST.

EXAMPLES

(A) 3-YEAR DEGREE COURSE IN ARTS

MAXIMUM ASSISTANCE ATTAINABLE

AD1 APPORTIONMENT RATIO

AMOUNT RECEIVED BY A STUDENT WITH AN ADI OF $8 000

*TOTAL AMOUNT

OF ASSISTANCE RECEIVED FOR 3 YEARS

50:50

60:40

50:50

60+40

/GRANT

$7 280