Revive the student loan scheme<\/p>\n
The Jakarta Post reported this week that three students from
\nJava were accepted into the Bogor Institute of Agriculture (IPB).
\nOn the surface, nothing is extraordinary about this good news --
\nthere are thousands of other students in the country who are
\ngranted similar opportunities every year.<\/p>\n
The three youths were the sons and a daughter of a small
\nfarmer, a retired village head and a motorcycle taxi (ojek)
\ndriver. They registered at the institute through a special
\nprogram for exceptional high school students without the
\nknowledge of their parents. They informed them only after they
\nreceived their notification letters.<\/p>\n
However, these letters of acceptance did not automatically
\nopen the door to the IPB. The students' parents could not afford
\nto pay the about Rp 5.7 million (US$650) needed for tuition fees,
\naccommodation and course materials.<\/p>\n
Luckily, the private sector came to the rescue. The students'
\nstories caught the attention of two Jakarta-based foundations and
\na wealthy figure who paid their costs. God-willing, this support
\nwill ensure the three become the first people in their families
\nto pursue higher education, a dream realized.<\/p>\n
However, these three students are just the tip of the iceberg.
\nHow many talented students currently miss out on education will
\nnever be known. The government has compiled no data on the matter
\nand dealing with this is not a listed priority at the moment. The
\nfinancial crisis, which hit Indonesia in 1998 and then developed
\ninto a multi-dimensional crisis, has caused small and medium-size
\nbusinesses to close and lay off their workers. These new
\nunemployed have no option but to shift the priorities to meet
\nbasic needs, like feeding their families.<\/p>\n
Education is expensive and many say higher education will
\nalways remain a privilege, not a right. The current system
\ndictates that only smart youths with the proper economic
\nresources can pursue their education at universities, especially
\nas tuition fees continue to rise each year. But there are
\nexceptions in life and the case of the bright students is one of
\nthem. They are a special breed -- they can be groomed as skilled
\nworkers to do research in laboratories, teach at our
\nuniversities, become bureaucrats or even future leaders.<\/p>\n
It is important that both businesses and the government set
\naside funds for social programs and grant scholarships to
\nstudents who are interested in pursuing their studies at colleges
\nand universities. Similar programs in the past to help needy-but-
\nbright students should be reactivated if not widened to cover
\nmore youths.<\/p>\n
Student loans, a scheme common in other countries, especially
\ndeveloped nations, is another way to help poor students finance
\ntheir studies. We can learn from other countries how to raise the
\nmoney required for the loans and manage and organize the
\nrepayments. The time is ripe for Indonesia to initiate this
\nscheme as many banks -- small and big -- are over-liquid because
\nof the high public saving rate.<\/p>\n
Indonesia needs to increase the education and training of its
\nhuman resources, including university students, in order to build
\na strong pool of skilled workers and technocrats to run this
\ncountry in the future. The success stories of Japan, South Korea,
\nTaiwan and Singapore -- all without natural resources -- prove
\nthe prosperity of a nation now depends more on the quality, not
\nthe quantity, of its citizens, while a large population counts
\nfor little or is a burden.<\/p>\n
State banks provided student loans in the form of the Student
\nCredit (KMI) scheme in the 1980s and shelved it in the 1990s
\nbecause many recipients of the loans failed to pay.<\/p>\n
However, the fact many students defaulted should have been a
\nreason to rectify the program, not to drop it. Student debt has
\nsome positive aspects: It teaches loan recipients how to use
\nmoney efficiently and responsibly if they are to pay it back
\nlater. They also learn about facing the consequences -- the law
\n-- if they default.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/revive-the-student-loan-scheme-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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