The Table 1 above can justify the impact of applying the 20% deduction on various salary levels, with more adverse effect for those graduates who will be earning FJ$18,000 or less. A graduate with salaries level of FJ$10,000 and/or FJ$12,000 will basically earn FJ$95.08 and/or FJ$39.69 below poverty line, respectively. Whereas graduate students with salary level of FJ$15,000 and FJ$18,000 will manage to earn a marginal FJ$43.38 and FJ$121.08 above the poverty line. One critical factor that we need to find, upon the availability of data is what is the proportion of students currently taking programs that will fall into these income levels category of FJ$18,000 and below?. According to FNU Strategic Plan 2020, on average 87.5% of their graduates from the period 2010-2013 were from the certificates and diploma programs, and this is expected to continue towards the TELS program period.
Therefore, Fiji TELS program repayment ratio is deem cumbersome in the sense that a standard 20 percent will be deducted from any graduates who began working, irrespective of their salary levels.
4.8.2 Loan Recovery
The question of how much will be recovered from this TELS program, can only be available once the data is available, but it highly likely that rate of recovery will be low, given the current high rate of unemployment. As stated by Johnstone (1986), the financial sustainability of any loan program, usually depend on the size of the recovery ratio, in terms of the extent in which the
College tuition is a heavy stressor for many students coming out of high school and tuition continues to rise each year as does competition. Furthermore, students who are more privileged and have parents who earn a higher income have a higher advantage to go to the college of their choice rather than student’s with lower income. In addition, more debt will be put on the student with lower income; as a result, the proposal of correlating income to tuition cost is necessary and will benefit the lower-income students who are put at a disadvantage. All in all, equal opportunity will be given to students, less stress and debt after college graduation will be present, and students will be able to attend the college of their preference regardless of income.
Do rising tuition costs affect Ferrum College students’ choice of major? Descriptive research will be done to determine if there is a relationship between rising tuition costs and Ferrum College students’ choice in major. A sample set of students attending Ferrum College will be participating in the study. Qualitative research methods will be used to collect data as the data will be primarily obtained by asking questions to students to determine if any patterns exist. Quantitative research methods will also be used as there will be many research subjects questioned to determine exact experiences. This mixed method approach, not only allows for identification of basic patterns, but also allows the researcher to find the number of people who rising tuition costs apply to. Predictions are that a number of Ferrum College students are determining their college major based on whether their projected salary for a particular job will allow them to pay back their student loans and still have available income left to support living expenses.
The Grads1st team would like to point out that repayments stand at ten percent of disposable income for a maximum term of two hundred and forty months. After that time any remaining sum owed is
In 2008, American 's lost over 10.4 trillion dollars in the financial crisis. Between 2008-2010 over 8.3 millions of jobs were lost. The government tried bailing out the country with a 4.6 trillion dollars and was only able to recover 1.1 million jobs, .9% percent of jobs. That is 4 million dollars in cost for each job recovered (NIA). Boyce Watkins, a finance professor at Syracuse University is quoted saying, "[College] is certainly an investment. The question is whether or not you get your return on that investment in actual financial capital... [and] this blanket
I’m also against the 10% plan I think it is immoral because it practical benefits student who come from more
The type and level of the school, the chosen major, and the cost of the college are all greatly defined dimensions. Data from a Baccalaureate and Beyond Survey calculated that the only difference between the earnings for a bachelor’s degree and a high school graduate’s lifetime earnings is the degree itself. Additionally, private school students may earn more in a lifetime, but will end up paying more for admission. Although they are making more earnings, their opportunity costs are much higher, making their return on investment lower. Selection of one’s major acts in this same way. The authors explain that the major that is paid the highest is “engineering, followed by computers and math. The lowest paid major… is education, followed by the arts and psychology
This issue of colleges not being affordable can affect state of Lower Kingston because of tuition hikes it causes a decrease in number of students enrolling to classes. Students who can’t afford the cost of a full-time chooses to take fewer classes and end up graduating more later which can affect the graduation rate of the school. Also students who work longer hours to pay for their classes may affect their academic
In 1980, Americans with a college education earned 30 percent more than a high school graduate, whereas in recent years, people with a college education earned roughly 70 percent more than a high school graduate. (582). They argue that the average income for a person with a higher education continues to increase. Additionally, the lower class will see a raise in their income and in turn, that will raise the overall standard of living. Meanwhile, “the premium for having a graduate degree increased from roughly 50 percent in 1980 to well over 100 percent today.” (583).
Every American college student must be familiar with financial aid because majority of undergraduate students receive financial assistant in form of grans, Federal Work-Study, federal loans, and federal tax credits program and tuition deductions. According to the “Trends in Financial Aid 2014”, in 2013-14 there were 238.3 billion available to financially support undergraduate and graduate students’ education. The financial support makes people believe that the support for American college students is as remarkable as the American higher education’s academic reputation. However, the most frequently discussed higher education policy issue is always cost. The skyrocketing tuition, huge student debt and large student loan default rate raise
This type of aid tends to go to students from families with the highest incomes. All students should be rewarded in some way for their unique abilities, but merit-based aid reduces the total amount of need-based aid available, not the number of students who require financial assistance to attend college. Furthermore, tax-credit programs provide welcome assistance to those fortunate enough to benefit from them, but many low-income families and students earn too little to benefit from tax reduction. In addition, during the 1990s, there was a notable increase in the percentage of students in the highest income quartile who received institutional aid. According to the U.S Department of Education, “the proportion of upper-income students receiving such aid increased from 12 to 18 percent; the proportion awarded to middle income students went from 17 to 23 percent” (U.S. Department of
The article “Fed Lifts Rates, Readies Asset Cuts” by Nick Timiraos, discussed the plan that was put into place for the economy to prevent the ‘Great Recession” in 2008 from happening again and promote the economy to do better. As defined in our textbook, a recession is a time when living standards and output are negative. In late 2007 through 2009, the United States faced a recession known as the Great Recession. During a recession, the trough phase can be met, which is when employment and output reach their lowest levels. This phase can last for a long time or be extremely short. The follow up period after a recession is then called a pansion, which the textbook explains as the time when income, real GDP, and employment will rise. During this
One strong point that ‘The Diploma Divides’ makes is that the costs of a university are increasing and because of this, fewer low-income students choose to go. In ‘The Diploma Divide’, the author states, “The costs of attending a public university has risen 60 percent in the past two decades. Many low-income students, feeling the need to help out at home, are deterred by the thought of years and lost wages and piles of debt.”(pg.1) As a low-income student, I can definitely relate because when dealing with little money in the household, low-income kids do
I fall fairly well into the averages presented in the 2016 student cohort. I earn above the weekly income of $244, this is likely due to the fact I work part time while the majority of 2016 employed students (103) worked casually while 145 didn’t work at all.
The United States is currently experiencing a slow recovery from the recession of 2008-09. The current unemployment rate is 7.7%, which is the lowest level since December of 2008 (BLS, 2012). However, this rate is believed to higher than the rate that would occur if the economy was operating at peak efficiency, and it is also believed that there are structural issues still underpinning this performance. For example, the number of Americans who have exited the work force as the result of prolonged unemployment is believed to be higher than usual. In addition, the Congressional Budget Office (CBO, 2012) notes that long-term unemployment of greater than 26 weeks is at a much higher rate than normal, which will have adverse long-run effects on the economy, since workers with long-term unemployment often find their career paths derailed.
The Department of Education in recent times has embraced a new system regarding student loans, bringing on board a customer-friendly policy. According to this new scheme, students will now have access to loans with easier and less complex repayment terms. This development will help them fast-track the repayment of their debts without hassles. The Department of Education also integrated an income-based repayment plan: a flexible approach geared at facilitating student finance in their most dire hour of need. Sadly, despite having the potentials to substantially pull off the amount of burden on people’s shoulders, this income-driven repayment scheme hasn’t gained much traction and acceptability among the general population. This is due to