To ensure that no students are deprived of education for lack of financial means, the Student Financial Assistance Agency provides financial assistance to needy students. Subject to the passing of a means test, the assistance available takes various forms such as fee remissions, grants and/or low interest loans for pre-primary to tertiary education. The agency also administers non-means tested schemes of assistance and privately funded scholarships awarded on the basis of academic merit.

Means-tested Financial Assistance

Kindergarten pupils receive assistance in paying tuition fees up to or by one half of the weighted average of the fees charged by non-profit making kindergartens or the actual fee, whichever is the less. In the 2001–02 school year, 61 658 pupils were granted fee remission totalling $386.8 million. With effect from the 2002–03 school year, a further level of remission at three-quarters of the fees has been introduced to better assist needy families with kindergarten children.

    Assistance for needy primary and secondary school students takes the form of grants for the purchase of textbooks, subsidies for home-school travel and remission of tuition fees for those studying at Secondary 4 to 7 in public sector schools. In the 2001–02 school year, $480.8 million was provided to 367 126 students of public sector schools and local schools under the Direct Subsidy Scheme to purchase essential textbooks and miscellaneous school-related expenses. A further $321.1 million was disbursed for travel subsidies to 203 696 students. In addition, 95 286 Secondary 4 to 7 students had their tuition fees waived, either fully or by one half. For students taking the Hong Kong Certificate of Education Examination and the Hong Kong Advanced Level Examination, 11 682 had their examination fees paid on their behalf at a cost of $12 million.

    At the post-secondary and tertiary level, grants, low-interest loans and travel subsidies are made available to needy, full-time students. Those pursuing eligible courses at UGC-funded institutions, the Hong Kong Institute of Vocational Education of the VTC, the Prince Philip Dental Hospital and the Hong Kong Academy for Performing Arts can obtain grants to cover their tuition fees, academic expenses and student union fees and a loan to help meet their living expenses. In the 2001–02 academic year, $821.5 million in grants and $541 million in loans were provided to 34 119 students of these institutions. For persons aged 25 or below pursuing accredited, self-financing post-secondary education programmes leading to a qualification at or above the levels of higher diploma, associate degree or professional diploma, the means-tested assistance is in the form of a grant or a loan to cover tuition fees. In the 2001–02 academic year, $23.7 million in grants and $27.4 million in loans were provided to 1 933 such students. In addition, 643 full-time students of the Hong Kong Shue Yan College were provided $4.6 million in grants and $10.4 million in loans. Travel subsidies totalling $96.4 million were also provided to 34 286 students of the above institutions.

Non-means Tested Financial Assistance

An alternative channel of finance for meeting tuition fee payments takes the form of non-means tested loans. These loans are interest-bearing on a no-gain no-loss basis. They allow borrowers to repay their loans over 10 years after graduation. Access to these loans is open to any person pursuing eligible full-time or part-time publicly funded or self-financing local award-bearing programmes as well as professional or continuing education courses provided in Hong Kong by registered schools, non-local universities and recognised training bodies. In addition, students pursuing accredited, self-financing post-secondary education programmes may also borrow for their living expenses. In the 2001–02 academic year, 16 947 persons obtained non-means tested loans amounting to $557.9 million.

Scholarships and Other Assistance Schemes

The Student Financial Assistance Agency administers many privately funded scholarships and assistance schemes for school students. Scholarships are mainly merit-based and are provided for both local studies and studies at overseas institutions.

Tuition Fee Reimbursement for Project Yi Jin (PYJ) Students

The Government provides a 30 per cent reimbursement of tuition fees to PYJ students who successfully complete a module. Starting from the 2002–03 school year, needy students who pass a means test will be eligible for reimbursement of 100 per cent of the tuition fees paid for each module completed satisfactorily.