Financial Support for Students in Higher Education: Hong Kong Experience

1992.第7卷(Vol. 7).pp. 76–87

Financial Support for Students in Higher Education: Hong Kong Experience

Hing-Tong MA(馬慶堂)& Siu-Wah CHOW


Higher education is very expensive in terms of both the running cost of the higher education institute and the private cost of students. The private cost of students is represented by the earning forgone, tuition fees, cost of boarding and living expenses.

In most countries, financial aid is given to the students in higher education. This is a transfer payment that the private cost is reduced by increasing the public cost. There are various forms of financial aids, e.g. grant, loan, tax relief to the parent. There are, however, hot debates in the world-wide on the method and procedures of giving these financial aids. Part I of this paper discusses some of the arguments involved in these debates. The experiences in some countries is used as examples to illustrate the arguments. In Part II, the financial aid system in Hong Kong is reviewed. And the present writers try to examine the equity and efficiency of the Hong Kong student finance scheme over time according to the following points: (1) the income distribution of students; (2) the parental contribution in tertiary education; (3) the apportionment of public fund to grant and loan; (4) total amount of loan and interest subsidized to university education; (5) the running costs of the means-test scheme. Lastly, results of the analysis and discussion on the above results will be presented in Part III.