From time to time I like to exercise my brain muscles of observation... I couldnt help but analyse the estimated registration fee hike for UKZN students for 2015. A percentage increase of more than 30% which obviously will affect the tuition fee for 2015. A percentage increase that is more than interest rate even more than what Banks are willing to pay as interest on investments.... Ok cool, what does this mean? It would mean that self funded students will nolonger afford to pay for their tuition fees and you dont need Calculus or Algebra to know this (% increase for tuition fee is higher than interest rate). This will hit hard on those parents who are in the (120k - 150k) pa income bracket, mostly the gorvement servants... ok fair enough... Possible solution, it would be to go and ask for student loans (remember these students do not qualify for financial aid since their parents earn above the minimum income bracket). What would be the result of this solution? Thousands of highly educated students will leave school strapped with student loans, the worst possible debt of all if you ask me. Student loans are the worst form of debt because student loans can never be forgiven or discharged. With most other types of debts, like a home mortage or credit card debt, a person can declare bankruptcy and the loans are wiped out. Thats not the case with student loan. Even if a student dies, their parents are on the hook for repayment of the loan, if they were co-signers as many are. If you are on financial aid you are not exluded from this, if you are doing well in your studies, only 40% is forfeited you still have to pay the 60% but heres the snag. The amount that one can be comfortable paying is often lower than the percentage increase or interest so technically the repayment is indefinate untill you adjust your monthly instalment which will strain you for a number of years since the income is not enough. Now here in high school... we teach our kids: 1. Go to school 2. Get better education so that u will make it to college. But nothing is said about paying for the rest of ur life... Contrary to popular belief, Once the student graduates, the interest clock begins ticking and interest starts to accrue. Rather than get richer after leaving school, millions become poorer, going deaper in debts as interest on the original school start to pile up. A student loan can negatively affect the student for life. A student loan can affect the home a student buys (if they can afford one, the quality of life for their family ( if they can afford a family), and their hopes for a secure retirement (if they are able to retire). For many, a student loan will be a proverbial albatross around their neck.... for life. My thoughts.... Education in South Africa has became a better investment plan as opposed to the traditional investment on property. I mean lets face it property isnt doing well currently infact mortgage loan have escallated as a result there has been a slight % increase as far as home prices are concerned worse this increase is still below interest rate hike.... Do your observation.... Just me exercising my brain muscles of observation and sharing my two cents in the process... you may keep the change...
Posted on: Wed, 10 Sep 2014 16:47:52 +0000