Shortfalls highlight need for new student loans system

By Hiep Pham. Despite the need to deal with a rising budget deficit, Vietnam this year decided to raise the amount available for student loans by almost 40%, after funds available from government fell short of demand for loans. The increase represents a considerable effort to maintain support for disadvantaged students.
The loan amount will increase from VND800,000 (US$38) per month per student, as stipulated in a 2007 government regulation, to VND1.1 million (US$52) per month, taking effect in the 2013-2014 academic year.
However, every year government funds for student loans fail to keep up with growing demand for higher education, opening up a debate on more radical measures to deal with loan shortfalls and student finance that would balance the need to widen university access with maintaining quality. More...