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Database Student-Parent Cost by Country
Asia

Hong Kong

I.      A Brief Description of Higher Education in Hong Kong

Like most institutions in Hong Kong, the colleges and universities as well as the governmental entities that fund and oversee them kept most of their distinctiveness after Hong Kong passed from its status as a British Colony to its new status as a Special Administrative Region (SAR) of China in 1997. Higher education in Hong Kong is mainly provided by the public sector. Universities and colleges are funded by the government through the University Grants Committee (UGC), the Vocational Training Council (VTC), or directly by the government. Universities and colleges supported by the government through the UGC are called UGC institutions, and include City University of Hong Kong (CityU), Hong Kong Institute of Education (HKIEd), The Chinese University of Hong Kong (CUHK), The Hong Kong University of Science and Technology (HKUST), Hong Kong Baptist University (HKBU), Lingnan University (LU), The Hong Kong Polytechnic University (PolyU), and The University of Hong Kong (HKU).

In 1998-99, there were about 84,000 full-time equivalent[1] students enrolled in the UGC institutions, and an additional 26,000 students taking continuing and professional education (CPE) courses in other institutions (UGC, 1999). The participation rate for undergraduates[2] in the UGC institutions in 1999 was 18 percent (UGC, 2000).

The University Grants Committee advises the Government of the Special Administrative Region (SAR) of China on the development and funding of higher education, and is directly responsible for the public grants to the above-mentioned eight tertiary institutions. Money is normally allocated to each institution in the form of a triennial block grant with little or no restriction as to its distribution between activities (UGC, 1996).

Funding to higher education from all sources in Hong Kong accounted for 1.3 percent of gross domestic product (GDP) in 1998, compared with 0.4 percent in Japan, 1.0 percent in Germany, and 1.1 percent in the U.S. The public expenditure on higher education as a percentage of the total public expenditures was 5.6 percent in Hong Kong, compared to 1.5 percent in Japan, 3.3 percent in the U.S., and 2.7 percent in the U.K.

Student loan/grant programs in Hong Kong are mainly provided by the Student Financial Assistance Agency. The agency offers financial assistance in the form of grants and loans through two programs: the Local Student Finance Scheme, and the Non-Means Tested Loan Scheme. In the 1999-2000 academic year, grants and/or loans through the Local Student Finance Scheme were provided to 47 percent of the student population. The assistance is provided in the form of a grant to cover tuition fees, academic expenses and compulsory union fees and/or a loan to cover living expenses.

Starting in the 1998-99 academic year, eligible full-time and part-time students may also apply for loans under the Non-Means Tested Loan Scheme (NLS). This scheme offers loans up to the amount of tuition to applicants who have not applied (cannot apply) for financial assistance due to ineligibility or who fail to receive assistance from the means-tested scheme (i.e. LSFS). The NLS loans are paid directly to higher education institutions in lieu of tuition fees. The Non-Means-Tested Loan Scheme provided loans to another 11,000 full-time students in publicly-funded tertiary institutions in the 1999-2000 academic year (Hong Kong Special Administrative Region Government, 2000).

For the UGC funded-institutions, tuition and fees from students are not a major source of income, though they do provide important revenue. The minimum level of tuition and student fees in the UGC-funded institutions is set by the government[3] in accordance with the current policy that the cost recovery rate should be 18 percent. Among the UGC funded-institutions, there is no differentiation between academic programs or between institutions in terms of tuition fees.


II. Estimated Expenses of Higher Education

Hong Kong
Higher Education Expenses Borne by Parents and Students
First Degree, Academic Year 1999-2000

(National currency HK$ converted to $ US
by 1999 purchasing power parity estimate $1 = HK$8.34)

 

Public

Low

Moderate

High

 

Special “One-Time” or “Up Front” Fees

HK$520
(US$62)

HK$630
(US$76)

HK$750
(US$90)

Tuition

HK$42,100
(US$5,048)

HK$42,100
(US$5,048)

HK$42,100
(US$5,048)

Other Fees

HK$100
(US$12)

HK$130
(US$16)

HK$140
(US$17)

Books & Other Educational Expenses

HK$1,500
(US$180)

HK$3,000
(US$360)

HK$6,000
(US$719)

Subtotal Expenses of Instruction
HK$44,220
(US$5,302)
HK$45,860
(US$5,500)
HK$48,990
(US$5,874)

Lodging

HK$9,720
(US$1,166)

HK$36,512
(US$4,378)

HK$84,747
(US$10,162)

Food

HK$10,000
(US$1,199)

HK$34,212
(US$4,102)

HK$46,707
(US$5,600)

Transportation

HK$9,184
(US$1,101)

HK$4,632
(US$555)

HK$5,100
(US$612)

Other Personal Expenses

HK$12,372
(US$1,484)

HK$18,000
(US$2,158)

HK$23,160
(US$2,777)

Subtotal Expenses of Student Living

HK$41,276
(US$4,950)

HK$93,356
(US$11,193)

HK$159,714 (US$19,151)

 

Total Cost to Parent & Student

HK$85,496
(US$10,251)

HK$139,216 (US$16,693)

HK$208,704 (US$25,025)


1. Low: lower special  and other fees and other educational expenses, living at home with parents.

2. Moderate: moderate special  and other fees and other educational expenses, living in dormitory or shared  apartment.

3. High: high special and other fees and other educational expenses, living as an “independent adult.”


References

Hong Kong Special Administrative Region Government. (2000, June 14). Tuition fees of UGC-funded institutions remain unchanged [Online]. Available: http://www.info.gov.hk/gia/general/200006/14/0614158.htm [2000, March 6].

People’s Daily. (2000, July 7). Tokyo is the highest (Tokyo ga sekai-ichi) [Online]. Available:
http://j.peopledaily.com.cn/2000/07/21/newfiles/a1400.html [2000, March 11].

Student Financial Assistance Agency. (2001, February). Welcome message [Online]. Available:
http://www.info.gov.hk/sfaa/content.htm [2001. March 6].

University Grants Committee. (1996, October). Higher education in Hong Kong – A report by the University Grants Committee [Online]. Available: http://www.ugc.edu.hk/hervw/content.html [2000, March 5].

University Grants Committee. (1999, May). Higher education in Hong Kong – A report by the University Grants Committee 1999 supplement [Online]. Available: http://www.ugc.edu.hk/english/documents/hervw_s/contents.html [2000, March 5].

University Grants Committee. (2000, August 30a). UGC statistics [Online]. Available:
http://www.ugc.edu.hk/english/statistics/index_nf.html [2000, March 6].

 

HO/BJ  11/5/01



[1] The numbers of part-time students are converted into “full time equivalents” for the purposes of student number targets and funding. The conversion factors are based upon costs (often marginal costs), course length compared with full time study, and other considerations.

[2] The number of first year, first degree places available is compared with the size of the relevant age group, which consists of 17 to 20-year-old.

[3] Although the government indicates minimum tuition and fees, the institutions are encouraged to charge higher fees in appropriate circumstances. For example, in some areas of postgraduate work and for a good deal of CPE (Continuing and Professional Education) programs, the market will bear "full-cost" fees.


 

 

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