The problem really came to my mind indeed when I read an article last month, around the time it came to pay tuition fee for the fall semester. It read that Financial Supervisory Service (FSS) refrained nonbanking lenders to stop from issuing loans to college students. Those lenders were charging students with preposterous amount of interest rates while student loans only take up one percent of their lending. I was dumbfounded. I did not recognize until then that actually many students have been borrowing money from those banks to pay their tuition for the past few years.
However, when searching for more articles, it was more shocking and I could understand the purpose of the FSS.
According to the FSS, the numbers of students who have borrowed money for their tuition from nonbanking lenders were around 47,000 a year and the numbers increased every year. As a result, the number of student financial delinquents jumped to about 26,000 last year.
Although I understand that the government did not want students to be financial delinquents before getting a job in the “real society” after graduation, there was reason to why students visit such nonbanking sector to get a “help.” Students were either disqualified to get student loans from banks or scholarships from schools, corporates, and some charities.
There was no way but to visit nonbanking lenders which also offer high interest rates that even rise up to 30 percent to pay for the tuition. It was the last means for them. Now, there is a chance that other illegal sector will come up to students who suffer from high tuition and eventually come up with student delinquents.
Financial difficulties from high tuition should not be an obstacle for students who need to spend time studying. A way to reduce tuition by universities, more student aid programs from the government or companies’ expansion on scholarships must be presented and should put into action as soon as possible.
The burden on students should be saved along with the universities equally. For universities, even though tuitions are the primary source of their revenue, they must take the first step and be initiative in lowering the currently high tuitions.
As shown in news a few days ago, there are around 100 universes with lots of saved money in their hands. They should stop in fear lest the amount of saved money and how they are spent should come to light. Rather, making a policy to use certain amount of money each year for tuitions should be established.
Establishing more funds for lowering tuition is another way that universities should try to work on. I think that Ewha shows real lots of effort in this way as there are many new scholarships provided from new funds that have started in the year 2010 and 2011 including “Sunbae Ramen” and more. If these funds continue and are provided well to the Ewha students, I believe that it would be easy and there would be a way in lowering the tuition. Eventually, the number of students who suffer from tuitions will be shaved.
I hope the time we stop think about the high tuition and focus only on studying as a college student to be realized in the very near future as most of the universitiy students wish.