Posts Tagged ‘higher education’

The widening income gap is affecting higher education

Tuesday, June 4th, 2013

Students from lower income households have always been able to turn to public institutions of higher learning to make their dreams come true. Public universities, whether national, prefectural or municipal, offered high quality education for much less money. However, a recent survey by a research group at the University of Tokyo has found that the well-publicized widening income gap is now being reflected in public university enrollments.

todai

University of Tokyo

The survey received 1,064 responses from parents of children who graduated high school in the spring of 2012. Households where the annual income was ¥4 million or less were classified as low income, while those whose annual income was ¥10.5 or more were classified as high income.

The percentage of low income students who advanced to a public university last year was 7.4, while the percentage of high income students who did the same was 20.4. In other words, the enrollment rate for higher income students was almost three times that of lower income students.

The research group conducted the same survey in 2006. In that year, 9.1 percent of the lower income students went on to public universities while 11.9 percent of higher income students did, a negligible difference. At the same time the ratio of lower income to higher income students who went on to private universities hasn’t changed significantly since 2006, when the research group concluded that public universities were fulfilling their mission of providing educational opportunities for lower income students. The group can no longer draw such a conclusion.

The reason for the widening gap is that more higher income students are applying to public universities because even they feel the need to save money. Public universities have a limited number of openings for new students, and higher income students tend to do better on entrance tests because they can afford supplemental education, such as juku (cram schools), which lower income students can’t afford.

The survey also asked those parents who thought their children’s academic achievements were “high” whether or not their children actually went on to university. Among these respondents, in 2006, 67 percent of lower income students and 72.9 percent of higher income students advanced to university; while in 2012 the respective portions were 53.3 percent and 76.9 percent.

The research group has called on the education ministry to provide more financial assistance to lower income students so that they can attend and afford university. In 2011 the average annual tuition for a public university was ¥540,000 and for a private university ¥860,000.

Beware of bureaucrats bearing student loans

Monday, February 20th, 2012

If you go to the University of Tokyo, you not only are more likely to receive an interest-free loan, but you'll probably get a job that will allow you to pay back the loan more readily.

As we explained in an earlier post, university-level scholarships, meaning grants, are pretty hard to come by in Japan. Though the term shogakukin is usually translated as “scholarship,” it’s really a student loan, administered by the publicly funded Nihon Gakusei Shien Kiko, or Japan Student Services Association (JASSO). We’ve already talked about how JASSO has increasingly cracked down on graduates who are slow in paying back these loans. According to the Asahi Shimbun, the number of lawsuits the association has brought against debtors increased ninefold over the past five years, owing mainly to the fact that graduates have not been able to find gainful employment.

The newspaper illustrates the problem with the story of a young man in Kitakyushu who last summer was instructed by JASSO to pay the entire remaining balance of his ¥2.2 million student loan. After graduating from a private university in 2006, he found a job selling kimono and started paying back the loan at a rate of ¥13,000 a month. Five months after starting the job the company went out of business. He took a job in a restaurant, but it only paid ¥140,000 a month and he was unable to keep up payments. He asked for and was granted an extension. In 2007 he got married and started making the payments again, but after a year and the arrival of a baby the burden became too much, so he asked for another extension. He quit the restaurant in June 2010 and supported his family with temporary jobs. He started making payments again but last spring JASSO asked him to settle the loan and pay back the entire balance, which amounted to ¥1.9 million. When he didn’t respond, JASSO threatened him with a lawsuit. Eventually, he refinanced the loan, which now included a penalty, agreeing to pay ¥15,000 a month until 2023.

JASSO offers two types of student loans. The first type (dai-isshu), which carries no interest, is approved for students whose grade-point average in high school is at least 3.5 (out of a possible 5.0) and whose household income is less than ¥10 million a year. The second type (dai-nishu) carries an interest rate of up to 3 percent and, according to the Wikipedia entry on shogakukin, is given to anyone who applies for it and, presumably, doesn’t qualify for the first type. A lawyer interviewed by the Asahi points out that the majority of people threatened with lawsuits by JASSO are type-two loan recipients, who typically go to non-elite schools and have trouble finding steady employment after they graduate. The gap between their expectations of what a university degree will provide and the reality of the job market can be inferred by the statistics. In 2006, JASSO sued 547 former students. Last year they sued 4,832.

Continue reading about student loans →

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