Kofi Nkrumah-Young 1 Financing Education Abroad Risk and Responsibility for Education Abroad...

Kofi Nkrumah-YoungKofi Nkrumah-Young 11

Financing Education Financing Education AbroadAbroad

Risk and Responsibility for Risk and Responsibility for Education Abroad Education Abroad

ProgrammesProgrammes


Financing EducationFinancing Education

TuitionTuition Course materialCourse material AccommodationAccommodation MealsMeals HealthHealth InsuranceInsurance Travelling Travelling OtherOther


Areas of Main RisksAreas of Main Risks

TuitionTuition Accommodation & MealsAccommodation & Meals HealthHealth InsuranceInsurance TravellingTravelling


TuitionTuition Why be concerned?Why be concerned? - Different modes of - Different modes of

financing HE and related issues.financing HE and related issues.– No tuitionNo tuition– Flat FeeFlat Fee– Variable FeesVariable Fees– Students’ LoanStudents’ Loan– Income contingent loan schemesIncome contingent loan schemes– Economic cost for foreign studentsEconomic cost for foreign students

Who pays?Who pays? Will the home Govt. pay or is it Will the home Govt. pay or is it the students’ responsibility?the students’ responsibility?

How much?How much? Will the student expect to pay Will the student expect to pay the local rate and if so who stands the the local rate and if so who stands the difference? Will the host institution absorb difference? Will the host institution absorb the difference?the difference?


Some CasesSome Cases Swedish Student in Jamaica – Swedish Student in Jamaica –

Expected to pay local tuition rates Expected to pay local tuition rates Czech Republic – No tuition for any Czech Republic – No tuition for any

student studying in the Czech student studying in the Czech languagelanguage

Holland – Phd. Students regarded as Holland – Phd. Students regarded as part time contracted staffpart time contracted staff

UTech – Different support mode for UTech – Different support mode for regional as against creating regional as against creating confusion for students confusion for students


Accommodation & MealsAccommodation & Meals

Why be concerned? Differences Why be concerned? Differences between host and home countries.between host and home countries.– Does the home country finance boarding Does the home country finance boarding

and lodging?and lodging?– How will the student studying abroad How will the student studying abroad

deal with the difference?deal with the difference?– Is the cost of living higher in the host Is the cost of living higher in the host

country?country?– Who deals with the difference? Who deals with the difference?


Health and InsuranceHealth and Insurance

The state of the public health sector The state of the public health sector in the host country.in the host country.

The cost of health insuranceThe cost of health insurance The existence of liability laws and the The existence of liability laws and the

extent of responsibilityextent of responsibility Who pays in the event of negligence Who pays in the event of negligence

or accident?or accident?


Health and Insurance Cont’dHealth and Insurance Cont’d

UTech making health insurance UTech making health insurance compulsory for all foreign studentscompulsory for all foreign students

EU requiring health insurance for all EU requiring health insurance for all non-EU nationals non-EU nationals


TravellingTravelling

Relocation costRelocation cost Visits to homeVisits to home


Financial RisksFinancial Risks To studentsTo students

– Probability of increased educational cost Probability of increased educational cost due to higher tuition, accommodation, due to higher tuition, accommodation, health and relocation expenseshealth and relocation expenses

To HEITo HEI– Probability of reduced income as a result Probability of reduced income as a result

of incurring additional expenses without of incurring additional expenses without compensating incomecompensating income

– Probability on increased cost due to Probability on increased cost due to increased liability expenses - insurance increased liability expenses - insurance and health and health


Mitigating the risksMitigating the risks Exchange programmes – you cover Exchange programmes – you cover

mine and I’ll cover yoursmine and I’ll cover yours Bi-lateral agreements – Bi-lateral agreements –

– Let’s discuss the specifics – UWI’s MOULet’s discuss the specifics – UWI’s MOU– We will take care of ours - PSL We will take care of ours - PSL

arrangements with UTecharrangements with UTech– We cover these and the rest is yours – We cover these and the rest is yours –

ScholarshipsScholarships Multilateral agreements – The Multilateral agreements – The

Socrates/Erasmus programmeSocrates/Erasmus programme


Discussion QuestionsDiscussion Questions

Is there need for further protection Is there need for further protection against financial risks in these EAPs?against financial risks in these EAPs?

What of cost/benefit analysis?What of cost/benefit analysis? In light of the unfinished discussions In light of the unfinished discussions

on the financing of HE can the on the financing of HE can the Caribbean afford to or not afford to Caribbean afford to or not afford to take on EAP at this time?take on EAP at this time?


Results of the DiscussionResults of the Discussion EAP is important for Modern EAP is important for Modern

language programmes at UWI but language programmes at UWI but cost for students restricts cost for students restricts participationparticipation

Suggested strategySuggested strategy– Exchange programmesExchange programmes– Seek Grant fundingSeek Grant funding– Provide information on funding that are Provide information on funding that are

already available: Students enrichment already available: Students enrichment programme and millennium projectprogramme and millennium project


Results of the DiscussionResults of the Discussion

Gap between faculties and EAP officeGap between faculties and EAP office Reciprocity factor in bilateral and Reciprocity factor in bilateral and

multilateral agreements multilateral agreements Tapping into private sector, alumni Tapping into private sector, alumni

for source fundingfor source funding Non support of taxation laws in Non support of taxation laws in

Jamaica to support philanthropyJamaica to support philanthropy


Results of the DiscussionResults of the Discussion Cost benefit analysis to support EAPCost benefit analysis to support EAP

– Need to highlight that benefits accrue to Need to highlight that benefits accrue to national development and not just to the national development and not just to the institutions and studentsinstitutions and students

– Need to summarise the quantitative as well as Need to summarise the quantitative as well as qualitative benefitsqualitative benefits

– Difficulty in measurementsDifficulty in measurements– Whose responsibility to drive the education on Whose responsibility to drive the education on

benefits?benefits?– Role of inclusion in strategic plans and into Role of inclusion in strategic plans and into

policypolicy– Institutional Will is needed and such must be Institutional Will is needed and such must be

the responsibility of management.the responsibility of management.


Minimising the financial risk to Minimising the financial risk to studentsstudents

GrantsGrants Employment opportunitiesEmployment opportunities Assisting students in planning their Assisting students in planning their

budgetsbudgets More coordinated approach to More coordinated approach to

financingfinancing


Minimising the financial risks to the Minimising the financial risks to the InstitutionsInstitutions

Use of bilateral agreements to Use of bilateral agreements to protect weaker institutionsprotect weaker institutions

Buffer organisation to absorb the riskBuffer organisation to absorb the risk Exchange programmes with Exchange programmes with

reciprocal agreements hence no reciprocal agreements hence no increase cost to institution while not increase cost to institution while not reducing the coverage to studentsreducing the coverage to students

Multilateral programmes where the Multilateral programmes where the Government absorb the risks e.g. the Government absorb the risks e.g. the socrates/erasmus programmesocrates/erasmus programme

Kofi Nkrumah-Young 1 Financing Education Abroad Risk and Responsibility for Education Abroad...

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