Bachelors II

[Germany] PhD Scholarships in Neuroscience Landscape at Berlin School of Mind and Brain



PhD Scholarships in Neuroscience Landscape at Berlin School of Mind and Brain

The Berlin School of Mind and Brain is an international graduate school offering a three-year doctoral program in English. The school is based in Berlin and part of an extensive neuroscience landscape.

The focus of the school`s research is on the interface of humanities and behavioral sciences with neurosciences (philosophy, social sciences,linguistics, behavioral and cognitive psychology, neuro-physiology, psychiatry, neurology, computational neuroscience, neurobiology).

[Europe] The 2009 Shell Scholarships for Postgraduate Degrees in UK and Netherlands Shell offers scholarships to international students for postgraduate taught degrees at the partner universities in UK and Netherlands. Applications are open for international students (including Pakistani students) for the courses starting in 2009. Shell Centenary Scholarship Fund The Shell Centenary Scholarship Fund (TSCSF) was established as a registered charity in 1997. Under various Masters programmes, TSCSF offers postgraduate students from developing countries the opportunity to study in the United Kingdom and the Netherlands, and gain skills that will make a long-term contribution to the further development of their countries. The scholarships are known as Shell Centenary Scholarships (in the UK), Royal Dutch Shell Centenary Scholarships (in the NL).

[Europe] Master Scholarship in Mechatronic and Micro-Mechatronic Systems by Erasmus Mundus The Erasmus Mundus Master in Mechatronic and Micro-Mechatronic Systems (EU4M) is a two-year, international Masters programme, in which three high-rated European universities participate. As a student, you will familiarize with the development and also the maintenance of systems which consist of a very high level of complexity (cars, airplanes, satellites, space laboratories, pace makers, micro-laboratories, mobile communication systems, self adaptive systems in optics, in robotics, ...). During the program, you will work two years on universities in two different countries: Karlsruhe (Germany), Besançon (France) and Gijón (Spain). During the First Year identical lessons are given at each institution to bring the students up to the same level of knowledge. The Second Year has to be studied at one of the two other institutions. The theoretical lessons are combined with practical training from industry and research centers.

[Singapore] The Singapore Government Undergraduate Scholarships 2009-2010 The Singapore Government awards the scholarship to Government-endorsed students from the other member countries of the ASEAN. Each Scholarship is for a full-time undergraduate degree course at the Nanyang Technological University, the National University of Singapore and the Singapore Management University. All disciplines except for Medicine and Dentistry are open to Scholars. The duration of each scholarships is for three or four years, depending on the discipline. The award based on academic merit and places will allocated by open competition. If necessary, a one-year bridging or foundation programme, in addition to the undergraduate studies, will be provided.

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Bachelors

[Greece] Master Scholarships in Information Networking at Athens MSIN



The INI (Information Networking Institute) offers the Master of Science in Information Networking program in Athens, Greece (Athens MSIN) in collaboration with Athens Information Technology (AIT). Modeled after the Pittsburgh MSIN program, the Athens MSIN is an intensive, full-time, 16-month graduate program that gives students a solid foundation in information technology and introduces students to management, strategic thinking, and policy, with the opportunity to study each of these areas in greater depth through electives.

A curriculum option allows students to choose a Professional Track or Research Track to develop an area of specialization. MSIN students are well positioned to pursue leadership, technical, and management positions in a variety of sectors and industries.

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[Germany] Doctoral Fellowships at Max Planck Research School for Competition and Innovation Doctoral Fellowships at Max Planck Research School for Competition and Innovation The IMPRS-CI offers several Doctoral Fellowships to outstanding students interested in the integration of the three disciplines law, business administration and economics, and the study of the nexuses between patent law and innovation, copyright law and creativity, and market transparency and competition. The PhD program is open to excellent applicants holding the equivalent of a German Diploma, Master`s degree or state examination in law, economics or management. The selection procedure includes an interview of short-listed candidates.

[Europe] Erasmus Mundus Master Scholarships in Cultural Landscapes (MaClands)




The objective of this Master is to educate students in the fields of sustainable preservation, management and development of cultural heritage. MaCLands will train potential skilled experts and adaptable practitioners in analysis, management and preservation (preventive and curative) as well as designers of overall and sustainable solutions on Town and Country planning issues for cultural heritage.

Consortium:

• Universite Jean Monnet de Saint Etienne (France, coordinator)
• Universitat Stuttgart (Germany) and
• University Federico II Di Napoli (Italy)

What loans can i consolidate??

Eligible Loans

The following federal education loans are eligible for consolidation into a Direct Consolidation Loan:

• Direct Subsidized and Unsubsidized Loans
• Federal Subsidized and Unsubsidized Federal Stafford Loans
• Direct PLUS Loans and Federal PLUS Loans
• Direct Consolidation Loans and Federal Consolidation Loans
• Guaranteed Student Loans
• Federal Insured Student Loans
• Supplemental Loans for Students
• Auxiliary Loans to Assist Students
• Federal Perkins Loans
• National Direct Student Loans
• National Defense Student Loans
• Health Education Assistance Loans
• Health Professions Student Loans
• Loans for Disadvantaged Students
• Nursing Student Loans

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Ineligible Loans

Some loans are always ineligible for consolidation. While these loans may not be included in a Direct Consolidation Loan, they may be considered in the calculation of the maximum repayment period under the Graduated or Extended Repayment Plan. These include but are not limited to the following:

• Loans made by a state or private lender and not guaranteed by the federal government
• Primary Care Loans
• Law Access Loans
• Medical Assist Loans
• PLATO Loans

Education in Australia

Education in Australia is primarily the responsibility of states and territories.

Generally, education in Australia follows the three-tier model which includes primary education (primary schools), followed by secondary education (secondary schools/high schools) and tertiary education (universities and/or TAFE (Technical and Further Education Colleges)). The Australian education system is one of the best in the world, ranking 8th on a worldwide scale.

Education is compulsory up to an age specified by legislation; this age varies from state to state but is generally 15-17, that is prior to completing secondary education. Post-compulsory education is regulated within the Australian Qualifications Framework, a unified system of national qualifications in schools, vocational education and training (TAFE) and the higher education sector (university).

The academic year in Australia varies between states and institutions, but generally runs from late January until mid-December for primary and secondary schools and TAFE colleges, and from late February until mid-November for universities.

Pre-school

Pre-school in Australia is relatively unregulated, and is not compulsory. The first exposure many Australian children have to learn with others outside of traditional parenting is day care or a parent-run playgroup. This sort of activity is not generally considered schooling. Pre-school education is separate from primary school in all states and territories except Western Australia and Queensland, where pre-school education is taught as part of the primary school system.

Pre-schools are usually run by local councils, community groups or private organizations except in the Northern Territory and Queensland where they are run by the Territory and State Governments respectively. Pre-school is offered to three- to five-year-olds, although attendance numbers vary widely (from 50% in New South Wales to 93% in Victoria). The year before a child is due to attend primary school is the main year for pre-school education. This year is far more

School

School is compulsory in Australia between the ages of six and fifteen, depending on the state and date of birth, with, in recent years, over three quarters of students staying on until they are eighteen^{[citation needed]}. Government schools educate about two thirds of Australian students, with the other third in independent schools, a proportion which is rising in many parts of Australia.

Government schools are free, while independent schools, both religious and secular, charge fees. Regardless of whether a school is government or independent, they are required to adhere to the same curriculum frameworks. Most school students, be they in government or independent school, usually wear uniforms, although there are varying expectations and some Australian schools do not require uniforms.

Government (or state) schools

Government or state schools are run by the local state or territory government. They do not charge compulsory fees, with the majority of their costs met by the relevant government, and the rest by voluntary levies and fundraising.

They can be divided into two categories: open and selective. The open schools accept all students from their government defined catchment areas. Selective government schools mostly cater for academically gifted students (the top 5 percent), although there are performing arts and sports schools. Almost all selective schools are in New South Wales,^{[citation needed]} though a few exist in other areas.

Selective schools are more prestigious than open government schools, and generally achieve better results in the school-leaving exams than independent or open government schools. Entrance to selective schools is often highly competitive and they cater to a large geographical area.

Other schools

Most Catholic schools are either run by their local parish and/or by each state's Catholic Education Department.

Non-Catholic non-government schools (often called "Independent" schools) enroll about 14% of students. These include schools operated by religious groups and secular educational philosophies such as Montessori.

Some independent schools charge high fees. Government funding for independent schools often comes under criticism from the Australian Education Union and the Australian Labor Party.

Normal Ages

Primary

• Kindergarten: 4-5 year olds
• Preparatory / Reception / Kindergarten (QLD, NSW,VIC and ACT): 5-6 year olds
• Year 1: 6-7 year olds
• Year 2: 7-8 year olds
• Year 3: 8-9 year olds
• Year 4: 9-10 year olds
• Year 5: 10-11 year olds
• Year 6: 11-12 year olds
• Year 7: 12-13 year olds (WA, SA, QLD)

Secondary

• Year 7: 12-13 year olds (ACT, NSW, TAS, and VIC,) Middle School NT
• Year 8: 13-14 year olds
• Year 9: 14-15 year olds
• Year 10: 15-16 year olds (high school NT)
• Year 11: 16-17 year olds
• Year 12: 17-18 year olds

NB: In some states students may be slightly younger, it varies between states. Some Independent schools also vary in whether grade 7 is secondary or primary as well as the existence of middle school.

Tertiary education in Australia

Tertiary or higher education in Australia is made up of universities and other higher education institutions (called higher education providers).

A higher education provider is a body that is established or recognised by or under the law of the Commonwealth, or a State or Territory. The provider has to be approved by the Australian Government before it can receive grants or its students can receive assistance from the Australian Government under the Higher Education Support Act 2003 (HESA). Providers are subject to quality and accountability requirements.

A higher education provider is either a:

• university
• self-accrediting provider, or
• non self-accrediting provider.

In 2007, the Australian higher education system consisted of:

• 39 universities of which 37 are public institutions and 2 are private;
• 1 Australian branch of an overseas university;
• 4 other self-accrediting higher education institutions; and
• non-self-accrediting higher education providers accredited by State and Territory authorities, numbering more than 150 as listed on State and Territory registers. These include several that are registered in more than one State and Territory.

The non-self-accrediting higher education providers form a very diverse group of specialised, mainly private, providers that range in size and include theological colleges and other providers that offer courses in areas such as business, information technology, natural therapies, hospitality, health, law and accounting.

Australian universities

There were 39 recognised universities in Australia in 2007, of which 37 were public institutions and 2 are private. For a list of all universities in the Australian university system , both public and private, see the article List of universities in Australia.

These universities are represented through the national universities' lobbying body Universities Australia (previously called Australian Vice-Chancellors' Committee). Eight universities in the list have grouped themselves together, in recognition of their perceived status and/or history, and classify themselves as the ‘Group of Eight (Australian universities)’ or ‘G8’. Other university networks also exist with less prominence (e.g., the Australian Technology Network of Universities; the Innovative Research Universities - Australia group).

Allocation of responsibilities

The Commonwealth has the primary responsibility for public funding of higher education.

Commonwealth funding support for higher education is provided largely through:

• the Commonwealth Grant Scheme which provides for a specified number of Commonwealth supported places each year;
• the Higher Education Loan Programme (HELP) arrangements providing financial assistance to students;
• the Commonwealth scholarships; and
• a range of grants for specific purposes including quality, learning and teaching, research and research training programmes.

The Department of Education, Science and Training (DEST) administers Commonwealth funding and develops and administers higher education policy and programs.

Decision-making, regulation and governance for higher education are shared among the Commonwealth, the State and Territory Governments and the institutions themselves.

By definition within Australia, universities are self-accrediting institutions and each university has its own establishment legislation (generally State and Territory legislation) and receive the vast majority of their public funding from the Australian Government, through the Higher Education Support Act 2003.

Some aspects of higher education are the responsibility of States and Territories. In particular, most universities are established or recognised under State and Territory legislation.

The Australian National University, the Australian Film, Television and Radio School and the Australian Maritime College are established under Commonwealth legislation.

The Australian Catholic University is established under corporations law. It has establishment Acts in New South Wales and Victoria.

Many private providers are also established under corporations law.

States and Territories are also responsible for accrediting non-self-accrediting higher education providers.

As self-accrediting institutions, Australia’s universities have a reasonably high level of autonomy to operate within the legislative requirements associated with their Australian Government funding.

The Australian Qualifications Framework (AQF) provides descriptors for qualifications accredited through the higher education sector, as well as those accredited by the vocational and technical education sector and the schools sector. All accredited higher education providers are listed on the AQF register.

Classification of tertiary qualifications

In Australia, the classification of tertiary qualifications is governed in part by the Australian Qualifications Framework (AQF), which attempts to integrate into a single classification all levels of tertiary education (both vocational and higher education), from trade certificates to higher doctorates.

However, as Australian universities (and a few similar higher education institutions) largely regulate their own courses, the primary usage of AQF is for vocational education. However in recent years there have been some informal moves towards standardization between higher education institutions.

In Australia, higher education awards are classified as follows:

• Certificate, Diploma and Associate Degrees, which take 1-2 years to complete, and consist primarily of coursework. These are primarily offered by TAFEs and other institutions as vocational training. Universities tend mainly to award Certificates and Diplomas as adjuncts to another degree, e.g. many Australian school teachers have completed a Bachelor of Arts or Bachelor of Science with a Diploma of Education (DipEd). They are also awarded at the graduate level, in which case they are called Graduate Certificate or Graduate Diploma (or sometimes Postgraduate Certificate and Postgraduate Diploma), and consist of similar material to a Masters by Coursework, but do not go for as long. The distinction between Graduate and Postgraduate Certificates and Diplomas is somewhat arbitrary and dependent on the institution offering them.

• Bachelors degrees, generally the first university degree undertaken, which take 3-4 years to complete, and consist primarily of coursework. Bachelors degrees are sometimes awarded with honours to the best-performing students.

In some courses, honours is awarded on the basis of performance throughout the course (usually in 4yr+ courses), but normally honours consists of undertaking a year of research (e.g. a short thesis or Masters by Research). If honours is undertaken as an extra year, it is known as an honours degree rather than a degree with honours. Generally, one must be invited by the university to do Honours as an additional year of study, as opposed to being something a student can apply for and it is often only offered to the highest ranking students of that year group.

Honours may be divided into First Class, Second Class (normally divided into Division I and Division II), and Third Class. This is roughly equivalent to the American classification of summa cum laude, magna cum laude, and cum laude. Individuals who do not attempt honours, or who fail their honours course, are awarded a degree with a grade of Pass.

• Masters degrees, which are undertaken after the completion of one or more Bachelors degrees. Masters degrees deal with a subject at a more advanced level than Bachelors degrees, and can consist either of research, coursework, or a mixture of the two.

• Doctorates, most famously Doctor of Philosophy (Ph.D.), which are undertaken after an Honours Bachelors or Masters degree, by an original research project resulting in a thesis or dissertation. Admission to candidature for a PhD generally requires either a Bachelor's degree with good honours (First Class or Second Class Division I), or a Masters degree with a research component.

In many cases a student with only a Pass Bachelor's degree can enroll in a Masters program and then transfer to a PhD. Australian PhDs do not tend to take as long as American or British ones, and consist of less coursework than most American PhDs; however this is contrasted by Australian PhDs often being more specific in focus than their American or British counterparts. There are also professional doctorates which consist of advanced coursework and a substantial project in an area such as education (DEd). There is no concept of a "first-professional doctorate" like those awarded in the United States.

• Higher Doctorates, such as Doctor of Science (DSc) or Doctor of Letters (DLitt), which are awarded on the basis of a record of original research or of publications, over many years (often at least 10).

Australian Universities tend to award more named degrees than institutions in some other countries. Most Australian universities offer several different named degrees per a faculty. This is primarily for marketing purposes. Universities often try to outdo each other by offering the only degree titled with a popular major.

By contrast, at an undergraduate level at Oxford University, almost all students complete a Bachelor of Arts (B.A.), even if they are studying areas such as Chemistry or Economics, whereas at most Australian institutions only students choosing to concentrate in the humanities would be awarded a B.A. However, although there is a large proliferation at the level of Bachelors and Masters, at the Doctorate and Higher Doctorate level most institutions only have four or five degrees in all, and almost all Doctorates are PhDs.

Unlike American institutions, where most medical doctors or lawyers (known as solicitors in Australia) will graduate with an M.D. or J.D., medical doctors and solicitors in Australia generally only graduate with Bachelor's degrees. In Australia, a degree of Doctor is only awarded after original research or honoris causa, although by custom medical doctors are permitted to assume that title without having completed a doctorate.

In the case of medical doctors, the most common award is M.B.B.S., the double degree of Bachelor of Medicine and Bachelor of Surgery (this is similar to the case in Britain). The most common award for lawyers is LL.B. or BLaws (which are both abbreviations, one Latin and the other English, for Bachelor of Laws).

Traditionally in Australia, medical degrees were commenced immediately after secondary education, unlike in the United States where student generally complete an undergraduate degree first before going to medical school. However, some universities have introduced graduate entry only degrees in medicine, but these are still classified as Bachelors degrees.

Law is commonly studied as a combined degree, such as with Arts or Science (BA/LLB, BSc/LLB), with only a small number of places available for a 'straight' law degree. The large number of combined courses enable students to develop skills in a diverse range of areas. Another common combination is Commerce and Law, which opens up many positions in business, commerce and industry. The Law degree in Australia is seeing fewer graduates going on to become practicing solicitors; instead many graduates take work in private industry or government sectors.

Australian Bachelors degrees are occasionally only 3 years in duration, however most are like the four year degrees found in the United States. The length of the degree usually depends on the field of study; for example engineering usually takes four years while medicine takes six. Combined degrees are also available and usually add an extra year of study. Australian universities tend to have less of an emphasis on a liberal education than many universities in the US, which is reflected in the shorter length of Australian degrees.

Associate's degree have recently been introduced. These generally take two years to complete and can be seen as equivalent to the Associate's degree in the US and the Foundation Degree in the UK. They are also equivalent to the older Australian qualifications the Diploma and the Advanced Diploma.

Prior to the 1980s health science disciplines were being established by Colleges of Advanced Education, who were forbidden to award "degrees". Courses were conducted and classified as a "Diploma of Applied Science in (discipline)". These courses had considerable content requirements, some having over 32 contact hours per week over a three year period. These "diplomas" have been somewhat devalued by the newer naming conventions, as some diploma courses conducted nowadays may only consist of attending 12 training days for a total of less than 72 contact hours. However, many former "diplomates" have either converted or upgraded their DipAppScis to the corresponding Bachelor degree, or have undertaken further post graduate study.

History

To World War II

The first university established in Australia was the University of Sydney in 1850, followed in 1853 by the University of Melbourne. Prior to federation in 1901 two more universities were established: University of Adelaide (1874), University of Tasmania (1890). At the time of federation, Australia's population was 3,788,100 and there were fewer than 2,652 university students. Two other universities were established soon after federation: University of Queensland (1909) and the University of Western Australia (1911). All of these universities were controlled by State governments and were largely modeled on the traditional British university system and adopted both architectural and educational features in line with the (then) strongly influential ‘mother’ country. In his paper Higher Education in Australia: Structure, Policy and DebateJim Breem observed that in 1914 only 3,300 students (or 0.1% of the Australian population) were enrolled in Universities. In 1920 the Australian Vice-Chancellors’ Committee (AVCC) was formed to represent the interests of these six universities.

The ‘non-university’ institutions originally issued only trade/technical certificates, diplomas and professional Bachelor’s degrees. Although universities were differentiated from technical colleges and institutes of technology through their participation in research, Australian universities were initially not established with research as a significant component of their overall activities. For this reason, the Australian Government established the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in 1926 as a backbone for Australian scientific research. The CSIRO still exists today as a legacy, despite the fact that it essentially duplicates the role now undertaken by Australian universities.^{[citation needed]}

Two university colleges and no new universities were established before World War II. On the eve of the War, Australia's population reached seven million. The university participation level was relatively low. Australia had six universities and two university colleges with combined student numbers of 14,236. 10,354 were degree students (including only 81 higher degree students) and almost 4,000 sub-degree or non-award students.

Student loans in the United States

While included in the term "financial aid" higher education loans differ from scholarships and grants in that they must be paid back. They come in several varieties in the United States:

• Federal student loans made to students directly: No payments while enrolled in at least half time status. If a student drops below half time status, the account will go into its 6 month grace period. If the student re-enrolls in at least half time status, the loans will be deferred, but when they drop below half time again they will no longer have their grace period. Amounts are quite limited as well.
• Federal student loans made to parents: Much higher limit, but payments start immediately
• Private student loans made to students or parents: Higher limits and no payments until after graduation, although interest will start to accrue immediately. Private loans may be used for any education related expenses such as tuition, room and board, books, computers, and past due balances. Private loans can also be used to supplement federal student loans, when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of higher education.

Federal loans

[edit]

See Federal Perkins Loan, Stafford loan, Federal Family Education Loans, Ford Direct Student Loans, and Federal student loan consolidation

Federal student loans in the United States are authorized under Title IV of the Higher Education Act as amended.

These loans are available to college and university students via funds disbursed directly to the school and are used to supplement personal and family resources, scholarships, grants, and work-study. They may be subsidized by the U.S. Government or may be unsubsidized depending on the student's financial need.

Both subsidized and unsubsidized loans are guaranteed by the U.S. Department of Education either directly or through guaranty agencies. Nearly all students are eligible to receive federal loans (regardless of credit score or other financial issues). Both types offer a grace period of six months, which means that no payments are due until six months after graduation or after the borrower becomes a less-than-half-time student without graduating. Both types have a fairly modest annual limit. The dependent undergraduate limit effective for loans disbursed on or after July 1, 2008 is as follows (combined subsidized and unsubsidized limits): $5,500 per year for freshman undergraduate students, $6,500 for sophomore undergraduates, and $7,500 per year for junior and senior undergraduate students, as well as students enrolled in teacher certification or preparatory coursework for graduate programs. For independent undergraduates, the limits (combined subsidized and unsubsidized) effective for loans disbursed on or after July 1, 2008 are higher: $9,500 per year for freshman undergraduate students, $10,500 for sophomore undergraduates, and $12,500 per year for junior and senior undergraduate students, as well as students enrolled in teacher certification or preparatory coursework for graduate programs. Subsidized federal student loans are only offered to students with a demonstrated financial need. Financial need may vary from school to school. For these loans, the federal government makes interest payments while the student is in college. For example, those who borrow $10,000 during college will owe $10,000 upon graduation.

Unsubsidized federal student loans are also guaranteed by the U.S. Government, but the government does not pay interest for the student, rather the interest accrues during college. Nearly all student are eligible for these loans regardless of demonstrated need. Those who borrow $10,000 during college will owe $10,000 plus interest upon graduation. For example, those who have borrowed $10,000 and had $2,000 accrue in interest will owe $12,000. Interest will begin accruing on the $12,000. The accrued interest will be "capitalized" into the loan amount, and the borrower will begin making payments on the accumulated total. Students can choose to pay the interest while still in college; however, few students choose to exercise this option.

Federal student loans for graduate students have higher limits: $8,500 for subsidized Stafford and $12,500 (limits may differ for certain courses of study) for unsubsidized Stafford. Many students also take advantage of the Federal Perkins Loan. For graduate students the limit for Perkins is $6,000 per year.

Federal student loans to parents

See PLUS loan

Usually these are PLUS loans (formerly standing for "Parent Loan for Undergraduate Students"). Unlike loans made to students, parents can borrow much more — usually enough to cover any gap in the cost of education. However, there is no grace period: Payments start immediately.

Parents should be aware that THEY are responsible for repayment on these loans, not the student. This is not a 'cosigner' loan with the student having equal accountability. The parents have signed the master promissory note to pay and, if they do not do so, it is their credit rating that suffers. Also, parents are advised to consider "year 4" payments, rather than "year 1" payments. What sounds like a "manageable" debt load of $200 a month in freshman year can mushroom to a much more daunting $800 a month by the time four years have been funded through loans. The combination of immediate repayment and the ability to borrow substantial sums can be expensive.

Under new legislation, graduate students are eligible to receive PLUS loans in their own names. These Graduate PLUS loans have the same interest rates and terms of Parent PLUS loans.

Parents should also be aware that legislation raised the interest rate on these loans significantly — to 8.5% on July 1, 2006.

Disbursement: How the money gets to student or school

There are two distribution channels for federal student loans: Federal Direct Student Loans and Federal Family Education Loans.

• Federal Direct Student Loans, also known as Direct Loans or FDLP loans, are funded from public capital originating with the U.S. Treasury. FDLP loans are distributed through a channel that begins with the U.S. Treasury Department and from there passes through the U.S. Department of Education, then to the college or university and then to the student.
• Federal Family Education Loan Program loans, also known as FFEL loans or FFELP loans, are funded with private capital provided by banking institutions (i.e., banks, savings and loans, and credit unions). Because the FFELP loans use private capital as their source, students who use FFELP loans are able to take advantage of payment options that are similar to those available to customers who take out a home loan or a consumer loan. For example, some institutions will allow a discount for automatic payments or a series of on-time payments. In 2005, approximately two-thirds of all federally subsidized student loans were FFELP.

According to the U.S. Department of Education, more than 6,000 colleges, universities, and technical schools participate in FFELP, which represents about 80% of all schools. FFELP lending represents 75% of all federal student loan volume.

The maximum amount that any student can borrow is adjusted from time to time as federal policies change. A study published in the winter 1996 edition of the Journal of Student Financial Aid, “How Much Student Loan Debt Is Too Much?” suggested that the monthly student debt payment for the average undergraduate should not exceed 8% of total monthly income after graduation. Some financial aid advisers have referred this as "the 8% rule." Circumstances vary for individuals, so the 8% level is an indicator, not a rule set in stone. A research report about the 8% level is available at

Private student loans

These are loans that are not guaranteed by a government agency and are made to students by banks or finance companies. Advocates of private student loans suggest that they combine the best elements of the different government loans into one: They generally offer higher loan limits than federal student loans, ensuring the student is not left with a budget gap. But unlike federal parent loans, they generally offer a grace period with no payments due until after graduation (this grace period ranges as high as 12 months after graduation, though most private lenders offer six months). However, some higher education advocates are private loan detractors because of the higher interest rates, multiple fees, and lack of borrower protections private loans carry that are not associated with federal loans

Private student loan types

Private loans generally come in two types: school-channel and direct-to-consumer.

School-channel loans offer borrowers lower interest rates but generally take longer to process. School-channel loans are 'certified' by the school, which means the school signs off on the borrowing amount, and the funds for school-channel loans are disbursed directly to the school.

Direct-to-consumer private loans are not certified by the school; schools don't interact with a direct-to-consumer private loan at all. The student simply supplies enrollment verification to the lender, and the loan proceeds are disbursed directly to the student. While direct-to-consumer loans generally carry higher interest rates than school-channel loans, they do allow families to get access to funds very quickly — in some cases, in a matter of days. Some argue that this convenience is offset by the risk of student over-borrowing and/or use of funds for inappropriate purposes, since there is no third-party certification that the amount of the loan is appropriate for the education finance needs of the student in question.

Direct-to-consumer private loans are the fastest growing segment of education finance and under legislative scrutiny due to the lack of school certification. Loan providers range from large education finance companies to specialty companies that focus exclusively on this niche. Such loans will often be distinguished by the indication that "no FAFSA is required" or "Funds disbursed directly to you."

Private student loan rates and interest

Private student loans typically have variable interest rates while federal student loans have fixed rates. Consumers should be aware that some private loans require substantial up-front origination fees. These fees raise the real cost to the borrower and reduce the amount of money available for educational purposes.

Most private loan programs are tied to one or more financial indexes, such as the Wall Street Journal Prime rate or the BBA LIBOR rate, plus an overhead charge. Because private loans are based on the credit history of the applicant, the overhead charge will vary. Students and families with excellent credit will generally receive lower rates and smaller loan origination fees than those with less than perfect credit. Money paid toward interest is now tax deductible. However, lenders rarely give complete details of the terms of the private student loan until after the student submits an application, in part because this helps prevent comparisons based on cost. For example, many lenders will only advertise the lowest interest rate they charge (for good credit borrowers). Borrowers with bad credit can expect interest rates that are as much as 6% higher, loan fees that are as much as 9% higher, and loan limits that are two-thirds lower than the advertised figures

Private student loan fees

Private loans often carry an origination fee. Origination fees are a one-time charge based on the amount of the loan. They can be taken out of the total loan amount or added on top of the total loan amount, often at the borrower's preference. Some lenders offer low-interest, 0-fee loans. Each percentage point on the front-end fee gets paid once, while each percentage point on the interest rate is calculated and paid throughout the life of the loan. Some have suggested that this makes the interest rate more critical than the origination fee.

In fact, there is an easy solution to the fee-vs.-rate question: All lenders are legally required to provide you a statement of the "APR (Annual Percentage Rate)" for the loan before you sign a promissory note and commit to it. Unlike the "base" rate, this rate includes any fees charged and can be thought of as the "effective" interest rate including actual interest, fees, etc. When comparing loans, it may be easier to compare APR rather than "rate" to ensure an apples-to-apples comparison. APR is the best yardstick to compare loans that have the same repayment term; however, if the repayment terms are different, APR becomes a less-perfect comparison tool. With different term loans, consumers often look to 'total financing costs' to understand their financing options.

Eligible loan programs generally issue loans based on the credit history of the applicant and any applicable cosigner/co-endorser/coborrower. This is in contrast to federal loan programs that deal primarily with need-based criteria, as defined by the EFC and the FAFSA. For many students, this is a great advantage to private loan programs, as their families may have too much income or too many assets to qualify for federal aid but insufficient assets and income to pay for school without assistance.

Additionally, many international students in the United States can obtain private loans (they are ineligible for federal loans in many cases) with a cosigner who is a United States citizen or permanent resident. However, some graduate programs (notably top MBA programs) have a tie-up with private loan providers and in those cases no co-signor is needed even for international students.

The terms for private loans vary from lender to lender. A common suggestion is to shop around on ALL terms, not just respond to "rates as low as..." tactics that are sometimes little more than bait-and-switch. However, shopping around could damage your credit score. Examples of other borrower terms and benefits that vary by lender are deferments (amount of time after leaving school before payments start) and forebearences (a period when payments are temporarily stopped due to financial or other hardship). These policies are solely based on the contract between lender and borrower and not set by Department of Education policies.

Federally subsidized consolidations are not available for private student loans,though several lenders offer private consolidation programs. Borrowers of privately subsidized student loans may face the same restrictions to bankruptcy discharge as for government based loans: New legislation makes clear that these loans are, like federal student loans, not dischargeable under bankruptcy. Even before the legislation was passed, however, private student loans that were guaranteed 'in whole or in part' by a nonprofit entity are non-dischargeable in bankruptcy (and most private loans, regardless of the lender, were indeed guaranteed by a nonprofit).

Discharge of student loans

US Federal student loans and some private student loans can be discharged in bankruptcy only with a showing of "undue hardship." Bankruptcy Code Section 523(a)(8) determines what loans can and can not be discharged. The undue hardship standard varies from jurisdiction to jurisdiction, but is generally difficult to meet, making student loans practically non-dischargeable through bankruptcy. While US Federal student loans can be discharged for total and permanent disability, private student loans cannot be discharged outside of bankruptcy.

Criticism of US student loan programs

After the passage of the bankruptcy reform bill of 2005, student loans are not wiped clean during bankruptcy. This provided a risk free loan for the lender, but interest rates remained high, averaging 7% a year.

In 2007, the Attorney General of New York State, Andrew Cuomo, led investigation into lending practices and anti-competitive relationships between student lenders and universities. Specifically, many universities steered student borrowers to "preferred lenders" which resulted in those borrowers incurring higher interest rates. Some of these "preferred lenders" allegedly rewarded university financial aid staff with "kick backs." This has led to changes in lending policy at many major American universities. Many universities have also rebated millions of dollars in fees back to affected borrowers

Student loans in the United Kingdom

British undergraduate and PGCE students can apply for a loan through their local education authority (LEA) in England and Wales, the Student Awards Agency for Scotland (SAAS), or their local education and library board in Northern Ireland. The LEA, SAAS, or education and library board then assesses the application and determines the amount that the student is eligible to borrow, as well as how much tuition fees, if any, the students' parents must pay. The family's income; whether the student will be living at home, away from home, or in London; disabilities; and other factors are taken into account. 75% of the full loan (around £3,000) is available to all students in England and Wales, with only the final 25% being means-tested (taking the total available up to just over £4,600 for those studying outside London and £6,475 for those living away from the family home and studying in London). Scotland has a slightly different assessment method where more of the loan is means-tested with a minimum loan of only £840. However much you get, it is paid in three instalments during each year of the student's course (one per term). Special rules apply for some courses and for part-time courses.

Loans are provided by the Student Loans Company and do not have to be repaid until the April of the year after students have completed their course and are earning £15,000 a year. However, the monthly threshold is £1250 so if you earn over that one month (say due to working overtime) you will make a payment towards your loan that month even if your gross yearly pay is less than £15,000. You will have to claim back this payment at the end of the tax year when you have received your P60 from your employer.

The interest rate is updated annually and is tied to inflation. It is applied only to maintain a constant value of the outstanding loan, as the 'buying power' of the pound changes and not to provide 'earned interest'. The loan is normally repaid using the PAYE system, with 9% of the graduate's gross salary over £15,000 automatically being deducted to pay back the loan. There is no particular schedule for clearing the debt, but, if it has not been cleared 25 years after repayment began, or the student turns 65 years old the remaining debt will be cancelled, in circumstances where the borrower has fully met their repayment obligations and not defaulted at any time when they should have been repaying. For students beginning courses before 1998, the arrangements for repaying and deferring are different. Although Scottish students have their tuition fees covered by the SAAS during their time of study, much of this is actually repaid in a Graduate Endowment. The Graduate Endowment has now been abolished and new students will not be required to pay it.

The Higher Education Act 2004 made significant changes to the loans system in England, Wales and Northern Ireland from 2006. Those with sufficient private funding can still pay tuition fees 'upfront' but everyone - regardless of their income - is now entitled to take out a loan to pay their fees. For those who take out a tuition fee loan, the Student Loans Company pays their fees direct to the place of study and the student, once they have graduated or left their course, Universities are now required to sign a special agreement with the Office for fair Access and, in return for an undertaking to provide a minimum bursary of £300 for all students who qualify, they may now charge tuition fees of up to £3,145. Students who began their courses prior to academic year 2006/07 are entitled to borrow additional loans to cover their tuition fees (which remain at the old rate). Critics claim these top-up fees will create tiers of "expensive" and "cheap" universities and make university financially inaccessible to many students. As a result, there have been national demonstrations and protests by students' unions.

For all students whose 'domicile' (family or full-time home base) is in England, radical changes are underway to enhance and improve the student finance system. Now known as Student Finance England, this is a comprehensive new service which is being phased in between now (2008) and 2012 and is being based on widespread consultation with students, prospective students, parents and other 'sponsors' helping a student through university. It seeks to reduce significantly the amount of time and effort required to apply for finance and the system is being constructed in a way which joins up the main agencies in higher education in a way that has not existed hitherto. The time scale of application is being changed, so that a student will be able to apply for finance at the same time as they apply for a university place and information is being shared in such a way that repeated requests for the same student details will be got rid of. First year students applying this year for a place in 2009 will have to deal with just two agencies - UCAS (to apply for a place) and the Student Loans Company, which will share much of the information supplied to UCAS and will then assess the applicant's eligibility for finance and make the appropriate payments. This service will be increased and extended to second and third year students in the subsequent two years until all applicants are assessed in the same way by SLC. Already, student finance has been radically changed to make it much easier for people from less well-off backgrounds to attend university. Now, anyone from a home background earning less than £25,000 but not more than £60,000 after normal deductions is entitled to a maintenance grant, the size of which(up to £2,835) will depend on income. Also, those entitled to the full maintenance grant are automatically entitled to the full bursary at their place of study (which can be up to £3,000 but is typically £1,000 per academic year). This year, the maximum loan amount for studying in London is £6,475 and (away from the family home) elsewhere £4,625.

Student loans in New Zealand

New Zealand provides student loans and allowances to tertiary students who satisfy the funding criteria. Full-time students can claim loans for both fees and living costs while part-time students can only claim training institution fees.

A non-refundable means-tested student allowance for living expenses can be claimed by students who are over 25 years old or whose parents have a low income. This criteria has caused anger among student bodies who point out that it excludes many self-sufficient adults from help due to parental income levels, and also that by age 25 most people have completed tertiary education.

Repayment

While the borrower is a resident of New Zealand, loans are repaid at rate of 10% of income above the minimum income level, an amount roughly equivalent to the unemployment welfare benefit is exempt from assessment.

From 2001, all full-time students have been exempt from interest while studying, and from 2006 all borrowers resident in New Zealand have been exempted interest.

Loan recipients who leave New Zealand are assessed on their loan balance for repayment purposes, with a minimum annual payment being required. Loan repayments can be suspended on request for those on no/low income overseas, however interest still accumulates. On 22 March 2007, the government introduced a three-year 'loan repayment holiday' for those overseas. In practice this is a uniform extension of the previous ability to waive repayments until a later date. As before, interest accumulates during this period.

Increasing debt

Average student loan balances have increased substantially over time. For instance, a 2007 survey by the New Zealand Union of Students' Associations found that the average student debt was over NZ$28,000, up 54% from 2004. (For comparison, the average annual income (before tax) of New Zealanders aged 15 or more was nearly NZ$35,000.)

The loan system has changed and modified since its inception in 1992. Initially it provided bulk payments to students and charged lower than market interest rates from initial drawdown. This led some entrepreneurial students to use this money for investment purposes benefiting them but leading to a widespread perception of student excesses. In 2001 a growing debt mountain caused the new Labour government to stop interest payments while students studied and in 2006 they rode to election on the promise of stopping interest for all those remaining in New Zealand. Nonetheless the total student debt reached $10 billion in 2008, and is growing by $1 billion annually.

Reaction

There is a lot of anger and frustration over the New Zealand loan system, especially from early generations of borrowers (1992–2001). These students consider themselves the 'guinea pigs' of the loan system, who were charged compounded interest from initial draw down and then watched as future generations had interest removed completely. This generation suffered from a lack of education about the consequences of debt, and a lack of role-models to look to for advice. It is no coincidence that some of the hardest hit by previous versions of the loan system were from the poorer families the system was supposed to 'enable'.

The student loan system has succeeded in turning New Zealand into a highly educated economy. However it has also led to a capitalist-minded workforce who frequently leave their home country in order to pursue the better career and loan repayment options available overseas

Student loans in Germany

German universities are usually free for students (although many Federal States of Germany have introduced a student fee of €1000 per year since 2006). Giving out student loans and grants is seen as a means to pave the way to higher education for children whose parents can't afford to fund their children's education otherwise. The federal law that regulates these student loans and grants is called "Bundesausbildungsförderungsgesetz" (Federal Training Assistance Act) or "BAföG" [ˈbaːfœg] for short, and the loans, grants, and combinations thereof are usually referred to simply as "BAföG" by students (as in "I'm getting BAföG"). Eligible groups include high school students, part-time and full-time university students, second path education students (i.e., those starting to study after having been in the workforce), and students of schools for professional training.

Eligibility dependent on parent income

The eligibility for student loans is (usually) dependent from parent income, as parents are required by law to fund their children's education (including higher education), and therefore students could theoretically sue their parents for funds for their education (although this is rarely done for obvious reasons). For low-income families, BAföG loans take over when these obligations can not reasonably be met by parents.

BAföG-loans are usually given out half as zero interest loan (to be repaid only after the receiver exceeds a certain income level after graduation) and half as grant money to university students. High school students get the full amount as grant money if they are eligible. The current maximum amount per month (for a university student) is 585 euros (until Sep 2008, then 643 euros). This can be lowered gradually if student or parent income or student assets exceed certain amounts. Thus the amount paid out can be lower than the maximum amount and even loans of 1 euro per month are given out if the calculation returns that amount. Such low grants seem nonsensical at first, but they are usually accepted by students (loans can be refused by the student), because eligibility for a BAföG loan (even of 1 euro per month) makes the student eligible for some other benefits like cut-rate telephone service or waiving of public television licence fees (which otherwise are paid by everyone who owns a working TV set).

Generally, BAföG loans are independent from student achievement or grades at least for two years. After that, a certain minimum grade level has to be met and proof of participation in required, but ungraded courses, needs to be provided to stay eligible. Change of field of study is allowed once during the first two years without becoming ineligible. For university studies, every field of study has predefined a maximum study duration (usually around five years), after which the student becomes ineligible for BAföG. Further funds can be granted as low-interest loan for another two years if certain criteria (like reasonable likelihood that the student will graduate during that time) are met.

Other than with BAföG you can also finance your studies with Bildungskredit from KfW, Bildungsfonds, or a Scholar

Eligibility independent from parent income

In some cases, like most notably if the student has worked full time for a number of years before returning to student status, BAföG eligibility is calculated independent from parent income, because parents' obligation to fund their children's education ends once the children enter the workforce full-time. In those cases, only student income and assets are consulted for BAföG eligibility and amount calculation.

Student loans in Denmark

Student grants and student loans in Denmark are administered by the Danish State Educational Grant and Loan Scheme Agency, a Danish government agency. All students above age 18 are entitled to a free grant regulated partly by the income of their parents if they are below age 20. The basic rate for students living on their own and older than 20 is 4,724 DKK (about $810) a month. If needed, the student may supplement this with a student loan of 2,418 DKK (about $415) that has to be repaid when the student has completed his or her education. Thus a student will normally receive about 56,688 DKK (about $9,735) a year in grants with an optional 29,016 DKK (about $4,985) in loans, making a total of 85,704 DKK (about $14,720). High schools and universities are free for students, requiring no tuition or similar fees.

Student loans in Canada

Student loans in Canada help post-secondary students pay for their education in Canada. The federal government funds the Canada Student Loan Program (CSLP) and the provinces may fund their own programs or run in parallel with the CSLP. In addition, Canadian banks offer commercial loans targeted for students in professional programs.

Government loans

Canadian citizens, permanent residents of Canada living in any province for over a year, and protected persons are normally eligible for loans provided by the federal government, through the Canada Student Loans Program (CSLP), in addition to loans provided by their province of residence.

Loans issued to full-time students are interest free while a student is in full-time studies. Students receiving a CSL for the first time on or after August 1, 1995 are eligible for up to 340 weeks (approx 6.5 years) of interest-free assistance. Students in doctoral programs are eligible for an additional 60 weeks, up to 400 weeks (approx 7.5 years). Students with permanent disabilities and students who received their first CSL prior to August 1, 1995 are eligible for up to 520 weeks of assistance (10 years).

As the length of North American graduate degree programs often exceed this 400 week maximum, students considering graduate study are advised to think carefully before taking out student loans. For example, an honours BA from a Canadian University takes four years, assuming satisfactory progress. MA programs in Canada vary in length from 1-3 years, with two years being the average minimum. A PhD, takes on average, 5 years to complete, although many students take significantly longer than this. Assuming a graduate student completes an honours BA (4 years), an MA (2 years), and a PhD (5 years), one can expect to be in university for at least 11 years. This is significantly longer than the 400 weeks maximum allotted to complete a degree by the National student loan program, and graduate students can easily find themselves in a position where they are required to repay their student loans while enrolled as a full-time student.

Funding is available for part-time students through the CSLP (provincial student loans are not available). Part-time students must make interest payments while in study and begin payments of principal and interest when they cease to be a part-time student. Grants may supplement loans to aid students who face particular barriers to accessing post-secondary education, such as students with permanent disabilities or students from low-income families.

Students must apply for the Canadian and provincial loans through their provincial government. The rules for what determines your province of residence vary, but normally it is defined as where you have most recently lived for at least 12 consecutive months, not including any time you spent as a full-time student at a post-secondary institution. In most cases, the province of residence is the province one lived in before becoming a post-secondary student.

Canada Student Loans (CSL) of up to $210 per week of full-time study or 60% of the student's assessed need (the lesser of these) can be issued per loan year (August 1–July 31). Loans issued through provincial programs will normally provide students with enough funding to cover the balance of their assessed need. Part-time loans of up to $4,000 can be made, but a student cannot be more than $4,000 in debt on part-time loans at any one time. All Canadian students may also be eligible for the Canada Millennium Scholarship Foundation Bursary (CMS Grant), and other grants provided by their province of residence.

For example, students in British Columbia may be eligible for a maximum of $14,300 combined loan and grant funding per year.

History

Prior to 1964, the national student loan program was known as the Dominion-Provincial Student Loan Program. This program was a matching grant partnership system between the federal and provincial governments. It was started in 1939 and ended with the start to the CSLP in 1964.

Some text from the Department of Human Resources and Social Development Canada:

The CSLP was created in 1964. Since its inception, the Program has supplemented the financial resources available to eligible students from other sources to assist in their pursuit of post-secondary education. Between 1964 and 1995 , loans were provided by financial institutions to post-secondary students who were approved to receive financial assistance. The financial institutions also administered the loan repayment process. In return, the Government of Canada guaranteed each Canada Student Loan that was issued, by reimbursing the financial institution the full amount of loans that went into default.

In 1995, several important changes were made to Canada Student Loans. First, the Canada Student Financial Assistance Act was proclaimed, replacing the existing Canada Student Loans Act (which still remains in force to this day) reflecting the changing needs of the parties involved in the loan process, including the conferred responsibility of the collection of defaulted loans to the banks themselves. The Government of Canada developed a formalized "risk-shared" agreement with several financial institutions, whereby the institution would assume responsibility for the possible risk of defaulted loans in return for a fixed payment from the Government which correlated with the amount of loans that were expected to be, or were, in default in each calendar year. During this period, the weekly federal loan amount was increased to a maximum of $165.

On July 31, 2000, the risk-shared arrangement between the Government of Canada and participating financial institutions came to an end. The Government of Canada now directly finances all new loans issued on or after August 1, 2000. The administration of Canada Student Loans has become the responsibility of the National Student Loans Service Centre (NSLSC). There are two divisions of the NSLSC, one to manage loans for students attending public institutions and the other to administer loans for students attending private institutions. Defaulted Canada Student Loans disbursed under this new regime are now collected by the Canada Revenue Agency which, by Order in Council dated August 1, 2005, became responsible for the collection of all debts due under programs administered by Human Resources and Social Development Canada.

Due to the close nature of the Canada Student Loan Program (CSLP) and the provincial student loan programs, the changes in 1995 and 2000 were largely mirrored by the provincial programs. As a result of these changes, students who attended school before and after these transition years may find that they have up to 6 different loans to manage (pre-1995 federal & provincial; 1995-2000 federal & provincial; and post-2000 federal & provincial). The extent to which this is possible depends largely on a student's province of residence.

A review of the Canada Student Loans Program was announced in Budget 2007. Changes resulting from the Review are expected to be announced in Budget 2008.

Students in professional programs

Most charter banks in Canada have specific programs for students in professional programs (e.g., medicine) that can provide more funds than usual in the form of a line of credit, sometimes with lower interest rates as well. Students may also be eligible for government loans that are interest free while in school on top of this line of credit, as private loans do not count against government loans/grants.

Loan administration and repayment

The Canada Student Loan (sometimes referred to as the National Student Loan) is administered by National Student Loan Service Centre under contract to Human Resources and Social Development Canada (HRSDC). Students have the choice of opting for a fixed interest rate of prime interest rate + 5%, or a floating interest rate of prime interest rate + 2.5%.

Based on the HRSDC student loan calculator , and assuming a prime interest rate of 4.5%, a standard 10-year (114 month) repayment period, and a loan of $30,000:

- if the Floating Interest option is selected, monthly payments will be $361.02 (principal and interest), resulting in total payments of $41,156.77 ($30,000 principal + $11,156.77 interest) over the life of the repayment.

- if the Fixed Interest option is selected, monthly payments will be $400.50 (principal and interest), resulting in payments of $45,657.54 ($30,000 principal + $16,657.54 interest).

Repayment assistance

CSLP offers a number of programs to assist students who find themselves facing financial difficulty during repayment. Among these programs are:

Interest Relief

Interest Relief is designed to help students meet repayment obligations if they are temporarily unable to make payments on their government student loans because of unemployment or low income. Interest Relief is granted for periods of six months, up to a maximum of 30 months. Some exceptions, such as Canadian residency, may apply. Students may also be eligible for a further 24 months of Extended Interest Relief. Once approved for Interest Relief, students are not required to make payments on either the monthly interest or the outstanding principal of their loan(s) (the federal and/or provincial government will pay the interest on a student's behalf).

Debt Reduction in Repayment

Debt Reduction in Repayment is designed to help students facing long-term financial difficulties manage the repayment of their Student Loan(s). DRR lowers the principal amount of a loan, thereby reducing the monthly loan payment to an affordable level based on family income. A student can receive up to three reductions (totalling up to $26,000) on their Canada Student Loan principal during their lifetime, depending on financial circumstances.

Revision of Terms

Revision of Terms is a feature that provides students with the flexibility to manage loan repayment in a way that is responsive to individual situations. It can be used to decrease the monthly payments by increasing the repayment period (from the standard 10 years up to 15 years) should a student find the standard terms difficult to maintain. It can also be used to increase loan payments by reducing the repayment period, allowing more rapid repayment of a loan.

Permanent Disability Benefit

Permanent Disability Benefit allows for the reduction of loans for students who are experiencing exceptional financial hardship due to a permanent disability. The eligibility criteria varies based on date of loan negotiation and lender. A recent Access to Information request indicated that over 60% of applicants to this program were denied loan forgiveness.

References

1. ^ "Determining Eligibility for Canada Student Loans". Retrieved on 2007-06-29.
2. ^ "How long can I apply for and receive student financial assistance? - Page 9". Retrieved on 2007-10-28.
3. ^ "Ontario Undergraduate Student Alliance Issue Briefing on Student Financial Assistance". Retrieved on 2007-08-09.
4. ^ "CSLP Review". Retrieved on 2007-10-25.
5. ^ "Building the Third Pillar: Reforming Ontario's Student Financial Aid System". Retrieved on 2007-08-09.
6. ^ "The National Student Loan Service Centre". Retrieved on 2007-05-21.
7. ^ "HRDC Student Loan Calculator". Retrieved on 2007-05-21.
8. ^ "HRSDC - Interest Relief". Retrieved on 2007-06-29.
9. ^ "HRSDC - Debt Reduction in Repayment". Retrieved on 2007-06-29.
10. ^ "HRSDC - Revision of Terms". Retrieved on 2007-06-29.
11. ^ "HRSDC - Permanent Disability Benefit". Retrieved on 2007-06-29.

Tertiary education fees in Australia

As a general rule, all students who attend Australian tertiary education institutions are charged higher education fees. However, several measures are in place to relieve the costs of tertiary education in Australia.

Most students are Commonwealth supported. This means that they are only required to pay a part of the cost of tuition, called the "student contribution", while the Commonwealth pays the balance; and students are able to defer payment of their contribution as a HELP loan. Other domestic students are full fee-paying (non-Commonwealth supported) and receive no other direct government contribution to the cost of their education. They can also obtain subsidised HELP loans from the Government up to a lifetime limit of $100,000 for medicine, dentistry and veterinary science programs and $80,000 for all other programs. Australian citizens and (with some limitations) permanent residents^[1] are able to obtain interest free loans from the government under the Higher Education Loan Programme (HELP) which replaced the Higher Education Contribution Scheme (HECS).

HELP is jointly administered by the Department of Education, Science and Training (DEST) and the Australian Taxation Office (ATO).^[2]

In addition, qualified students may be entitled to Youth Allowance or Austudy Payment to assist them financially while they are studying. These support payments are means and assets tested. Further assistance is available in the form of scholarships.

Overseas students are charged fees for the full cost of their education and are ineligible for any loans from the Commonwealth, but may apply for international scholarships.

History

n 1940, the Curtin Labor Government saw a need for the country to increase the number of university graduates and for more civil and military research. To do this, it dramatically increased the number of scholarships it offered to enter university and allowed women to apply for these scholarships (they were previously exclusive to men). The Menzies Liberal Government also supported and extended the ability of ordinary Australians to attend university.

In the 1960s, the Menzies Government encouraged and funded the establishment of new universities to cater for increasing demand. These universities were built in outlying suburbs and offered special research scholarships to encourage students to undertake postgraduate research studies. Many of the universities that were established under this scheme are members of Innovative Research Universities Australia.

In 1967, the Menzies Government created a category of non-university tertiary institution (called College of Advanced Education (CAE)) that would be funded by the Commonwealth. These CAEs were easier to access and cheaper to attend than the traditional university, while delivering many university-equivalent Bachelor degrees.

During the early 1970s, there was a significant push to make tertiary education in Australia more accessible to working and middle class Australians. The Whitlam Labor Government abolished university fees on the 1st of January 1974. This decision did not greatly change the socio-economic backgrounds of students attending universities because only 20 to 25 percent of students paid fees as most had Commonwealth scholarships. Another reason for the lack of change was because low high school retention rates had resulted in many young people from disadvantaged backgrounds not completing secondary education and therefore never having the opportunity to choose to attend university.

In 1989, the Hawke Labor Government set up the Higher Education Contributions Scheme (HECS)^[3], which was developed by economist and lecturer at the Australian National University, Bruce Chapman and championed by Education Minister John Dawkins (see Dawkins Revolution). Under the original HECS, a $1,800 fee was charged all university students, and the Commonwealth paid the balance. A student could defer payment of this HECS amount (in which case it was called a HECS debt) and repay the debt through the tax system, when the student's income reached a certain level. As part of the reforms, Colleges of Advanced Education entered the University sector by various means.

In 1996, the new Howard Coalition Government, while otherwise retaining the HECS system, created a three-tier HECS fee structure. Fees were charged on the basis of the perceived value of courses. Courses considered to have most likelihood of generating higher income for students in the future (eg. Law and Medicine) were the most expensive and those least likely to generate higher income (eg. Nursing and Arts) were the least expensive. At the same time, HECS charges increased by an average of 40%. Universities were permitted to create full-fee places on which they could charge full up-front fees to students who missed out on a HECS place. In other words, you could pay more money when you had lower grades and still get into your desired university place.

2005/6 reforms

In 2005 the Commonwealth government deregulated university fees, permitting universities to increase fees by a maximum of 25%.

As part of the changes, from 2007, HECS places became known as Commonwealth supported places (CSP). A student in a CSP is only entitled to study for a maximum of 7 years full-time (16 years part-time) at CSP rates. This is known as Student Learning Entitlement (SLE). After that period the student must take either a post-graduate FEE-HELP load (if available) or study at full-fee rates.

The HECS debt became a pre-2005 debt, while HECS-HELP referred to a post-2005 debt. HECS-HELP (formerly HECS) maintains the same principles as HECS. If a student receives a HECS-HELP loan, the Commonwealth government pays the loan amount directly to the higher education provider on behalf of the student.

An alternative option is FEE-HELP (formerly PELS). FEE-HELP provides eligible fee-paying students with a loan to cover their postgraduate fees. This option is only available for post-graduate students attempting an eligible post-graduate course. In 2007, the FEE-HELP lifelong limit is $80,000, and $100,000 for students studying dentistry, medicine or veterinary science. Students cannot borrow any more than $50,000, even if once debt is repaid.^[4]

When a student has used up the SLE, he or she may only study under a FEE-HELP course (capped at $50,000) or as part of a full-fee course. Full-fee courses are relatively expensive because the student must pay the costs upfront, resulting in a significantly larger debt than a standard HECS-HELP loan, usually taken for its lower academic entrance requirements.

FEE-HELP courses are available at a post-graduate level (and occasionally for some undergraduate full-fee places) however they are not available at every institution or in every course. The only remaining option is a full-fee place paid upfront.

Commonwealth supported students

The Commonwealth Government determines the number and allocation of Commonwealth supported undergraduate places with each public higher education providers each year through the Commonwealth Grant Scheme (CGS). A Commonwealth supported place is a higher education place for which the Commonwealth Government makes a contribution to the higher education provider towards the cost of a student's education. The student only makes a contribution towards the cost of education, known as the student contribution. Commonwealth supported places are available to citizens of Australia and New Zealand and some Australian permanent residents.

Commonwealth supported places are allocated to students by the tertiary admissions centre in each state or territory:

• Universities Admissions Centre (UAC) in NSW and ACT
• Queensland Tertiary Admissions Centre^[5]
• South Australian Tertiary Admissions Centre^[6] in South Australia and the Northern Territory
• University of Tasmania in Tasmania
• Victorian Tertiary Admissions Centre (VTAC) in Victoria
• Tertiary Institutions Service Centre^[7] in Western Australia.

The allocation is usually based on secondary school results (through the UAI, ENTER, TER or OP scores), TAFE qualifications and previous university results.

The student contribution varies between courses. It is based upon the expected earnings following a students' graduation, not the cost of providing the course. Higher education providers can set the student contribution level for each unit of study, up to a maximum level set by the Government. It is said that, due to government underfunding of universities, universities almost always charge the highest level allowable

Fee-paying students

Students who do not receive a Commonwealth supported place may obtain a fee-paying place, as long as their ENTER/UAI/TER tertiary entrance rank or other qualifications exceed a certain minimum. Most postgraduate courses do not have Commonwealth supported places available and therefore all these students are fee-paying. Fee-paying students are charged the full cost of their course, with no Commonwealth contribution.

Fee-paying students can obtain loans under the Higher Education Loan Programme, called FEE-HELP loans, to cover all or part of their fees. Students who obtain these loans are charged a 20% loan fee on top of the amount borrowed. Students are able to borrow a lifetime maximum FEE-HELP loan of $100,000 for medicine, dentistry and veterinary science programs and $80,000 for all other programs (adjusted for inflation). In 2005, FEE-HELP loans replaced the Open Learning Deferred Payment Scheme (OLDPS), the Postgraduate Education Loan Scheme (PELS) and the Bridging for Overseas-Trained Professionals Loan Scheme (BOTPLS).

OS-HELP

OS-HELP is a loan scheme to assist some undergraduate domestic students to undertake some, but not all, of their course of study overseas. Students are able to obtain a loan of $5,000 for every six months, but can only receive a total of two loans throughout their lifetime. Unlike other loans in the HELP, the loan amount is paid directly to the student and the terms for the loans are set out by the tertiary providers.

As in the FEE-HELP loan scheme, a 20% fee applies on the amount borrowed.

HELP LOAN

HELP loan management

HELP debts do not attract interest, but are instead indexed to the Consumer Price Index (CPI) on 1 June each year, based on the annual CPI to March of that year. The indexation rate applied on 1 June 2006 was 2.8% and 3.4% on 1 June 2007. Indexation applies to the part of the debt that has been unpaid for 11 months or more. Thus, indexation is calculated on the opening HELP debt balance on 1 July of the previous year plus any debt incurred in the first half of the current year (usually for first semester courses) less any compulsory and voluntary repayments, with bonus. Any HELP debt incurred on second semester courses (usually determined in June) will not be subject to indexation until the next year. After indexation, the new balance is rounded down to a whole dollar amount.^[9]

HELP account debtors can make voluntary repayments. These repayments attract a 10% bonus for repayments over $500. This means that if a person voluntarily repays $1000, the debt is reduced by $1100. If the remaining debt is less than $500 the bonus still applies on repayment of their balance of the debt. As making voluntary repayments does not exempt the person from compulsory repayments, if the person intends to pay off the total debt voluntarily, it is financially advantageous for them to do it before lodging the tax return. This will attract the 10% bonus on the repayment, and there would be no balance on the debt to which the compulsory repayment provisions can apply. Better still, if the voluntary repayment is made before the indexation date of 1 June, the avoiding of the indexation adjustment is an additional bonus. Even factoring in the 10% bonus on voluntary repayments, many people elect not to pay off their debt in advance of the required repayments because it still works out to be probably the cheapest loan someone will ever receive.

If a person with a HELP debt dies, the debt is cancelled (the debtor's estate is not required to pay the debt).

Repayments

HELP debts are administered by the Australian Taxation Office and will be repaid compulsarily over time through the taxation system. If the HELP Repayment Income (HRI) of a person with a HELP debt exceeds a certain threshold, which for the 2007/08 financial year is $39,825, a compulsory payments will be deducted from the person's tax for the year. To work out the HRI, the ATO will add back to the person's taxable income any net rental loss claimed against that taxable income and add fringe benefits and exempt foreign income received, which have not been included in the taxable income. Unlike marginal tax rates, the repayment rate applies on the full HRI, so that a person with a HRI of $39,500 in the 2007/08 tax year would not have to make any compulsory HELP repayment, but a person with a HRI of $40,000 would make a payment of $1,600. This is 4% of the HRI (not taxable income or the debt balance) of $40,000. The compulsory repayment amount cannot exceed the balance of the HELP debt.