Reduced Access to Tertiary Education: Dilemma for the Poor

by: Kymberli Whittaker

"Do well and you will be rewarded". This is the foundation on which educational goals are set. The higher up you climb on the educational ladder, the better off you will be. Children are admonished to pass GSAT (Common Entrance in my day) in order to go to a prestigious High School; then get good results at CXC so they can either go to Sixth Form or go straight to University. 

The objective of getting good passes at Fifth and Sixth Form is to gain acceptance to University to become the famed, Doctor, Nurse, Lawyer, Teacher, and Businessman to make money and get a better life. If born “poor” or “financially strapped”, the saving grace for many in these challenging economic times is the Students’ Loan Bureau.

Children are told that the only “right” way to make it in life is to get an education. Yet it seems that this “right way” is becoming more exclusive and elusive for those who do not have the “right” pockets.

Currently, the Students’ Loan Bureau is yet to identify the 1 Billion from the 1.8 Billion needed to finance loans for students: 6000 new and 9000 returning for the academic year 2014-2015. The school year officially starts September 1, 2014…less than two weeks away.

For the academic period 2012-2013, the institution faced a significant challenge to meet the $4.2 billion needed.  In October 2012, $1.7 billion or 41 per cent of the projected $4.2 billion to be disbursed was identified at that juncture. This shortfall is obviously not a new problem, and yet here we are again, two years later, looking at the causes, pointing fingers and yet not finding any viable solutions.

The figures are disturbing as the numbers agreed to be disbursed this year is almost three times less than that in 2013. It is clear, that fewer people are receiving financial assistance from the main entity put in place to fund tertiary education for the poor, and there is less money to pay out to the reduced numbers.

The SLB's  Mission Statement is fast becoming obsolete:

“THROUGH A SUSTAINABLE REVOLVING LOAN FUND PROVIDE THE POOR AND OTHERS WITH AFFORDABLE  FINANCING FOR TERTIARY EDUCATION AND CLIENT SATISFACTION THEREBY CONTRIBUTING TO SOCIAL MOBILITY AND NATION BUILDING.”

It is evident the fund is not sustainable as is, and as a result will affect the poor and "others" with a ripple effect of reducing opportunities for social mobility and nation building through an educational platform. The fund aimed to benefit the poor will not be accessible to the poor. The poor ,who once they prove their need, have to pay money to insure the loan before it can be disbursed to the institution. The poor, who have to find additional sums for boarding/ living expenses if coming from rural areas, transportation, food, books and other materials necessary  to be successful in whichever degree they decide to pursue. The poor, who simply do not have it to begin with are at a greater risk of not being granted loans to assist in their social mobility.

We are in real trouble. Again, the news of the shortfall for the year  has come at the 11^th hour.  Hall Orientation has started  at UWI as the academic term draws nigh…yet, loans are still pending.  If we as a nation are not careful, the buck will stop at CXC for more and more students.

The loan scheme is to be a revolving  fund, however, those who have received loans in the past are not contributing to the fund as desired. Some persons simply cannot afford to repay their loan at the end of their university tenure as they are yet to receive gainful employment; others are employed in jobs which once their basic needs of food, shelter and clothing are met cannot  repay the loan while others simply choose not to. The latter  borrow and repayment is not a priority.

The Students' Loan Bureau has approached the private sector for funds to assist in closing the funding gap, but without any known success as institutions are unwilling to lend to SLB without a Government of Jamaica guarantee. It is evident that SLB's current loan model cannot sustain the growing demand for student loans without considerable yearly increases in capital. And even with a hundred per cent compliance rate for repayment, on the part of borrowers, the increased demand for more student loans calls for greater capital injection in the SLB.

Jamaica’s economic climate is harsh, however one has to acknowledge that we are treading through dangerous waters, as Bachelor’s degrees are almost a dime a dozen, with several institutions offering programmes and at the end of the student’s tenure,  jobs commensurate with qualifications are hard to find. The stance taken by the Ministry of Education in prioritizing certain degrees for loan assistance probably has been a long time coming. Popular degrees such as Business Administration and Law are to feel the pinch, as relevant and under-subscribed  professions are given priority.

Students have to be strategic in career choices as it is pointless to go to school for 3-4 years only to sit at home with the same degree.

Tertiary education is becoming grossly undervalued and out of reach, so what then  can we do to secure  the future of the country.? Depending on the government and their institutions is not the way. Firstly parents need to start saving from birth to lessen the burden, as I believe that much responsibility is shafted to the state. $100 saved religiously at intervals during a child's lifetime is one way. We need to get into the culture of planning for the long-term.

The NEI Reports have shown that many students are under-performing, year after year. I believe the Government should stop paying for CXC Subjects. Great initiative but the free mentality at this level  is not heralding positive results.  The money saved can be put in funds to assist our youth who have accepted the challenge to work and make it in life.

  The Private sector also needs to step up to the plate because the environment which will be created in a few years will detract investors and prevent economic stimulation thus reducing profits and directly affecting their business. Alumni of institutions, need to step up and invest in their people and thus invest in their country. Jamaica has come a long way and as citizens we need to take a more active role in our nations’ development to prevent tertiary education from returning to the luxury it once was.