The Impact Of Applying The 20 % Deduction On Various Salary Levels

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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
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