No 100% fee spike - Holness

Edmond Campbell, Senior Staff Reporter

EDUCATION MINISTER Andrew Holness yesterday rushed to allay fears that tuition fees at tertiary institutions would spike next year, arguing that while an increase is expected, the Government did not intend to slash its subsidy overnight.

A raging debate erupted yesterday when news emerged that students at the tertiary level might be facing a 100 per cent increase in tuition fees in the 2011/2012 academic year.

The projection was made by executive director of the Students' Loan Bureau (SLB), Lenice Barnett, while responding to questions at a meeting of Parliament's Public Administration and Appropriations Committee on Wednesday.

At a press briefing at the ministry's Heroes Circle headquarters in Kingston yesterday, Holness could not indicate by how much the Government's subsidy would be reduced next year, but gave the assurance that the cut would not be substantial.

"The change in how we fund tertiary education would be gradual. So you are not going to see an overnight 40 per cent reduction in the subsidy," he told journalists.

Greater loan access

According to Holness, the Government's trend toward a reduction in subsidy would continue, but pointed out that changes were coming to facilitate greater access to loans by students.

"Students will be required to pay more, but this requirement would not be burdensome and onerous as it is now, because we will make the facility student-friendly, income-contingent and longer payback period and lower interest rate," Holness added.

He said the administration was seeking to pump more resources in the SLB to expand its capital base so that more students could obtain loans.

"As we reduce the subsidy to the universities, that reduction would also be channelled into the capital base of the SLB."

Meantime, the University of Technology (UTech) has joined the debate, saying the level of subsidy to its students averages about 44 per cent.

"As such, the university does not envisage that a 100 per cent increase would apply to its students," UTech said in a release yesterday.

In his response yesterday, Holness said the Government would also be looking at attracting investments from the private sector to shore up the SLB.

However, he said the necessary legislative framework would be introduced to ensure repayment of SLB loans. Holness said that the Credit Reporting Act and proposed amendment to the Students' Loan Fund Act would include provisions that could deal with borrowers who had a propensity to default on their loans.

The SLB executive director indicated on Wednesday that current tuition fees could move from $240,000 to nearly $500,000 by 2011/2012.

Currently, the Government subsidises about 80 per cent of tertiary tuition fees, with students paying the 20 per cent balance.

edmond.campbell@gleanerjm.com