Full disclosure - UWI tightens student finance requirements
Published:Sunday | January 30, 2011 | 12:00 AM
Avia Collinder, Business Writer
The University of the West Indies (UWI) used to require applicants to simply indicate a source of funds, but now says entrants have to provide certified proof of ability to pay.
The institution, which appears set to rationalise its staffing complement and also increase fees in line with a cut in subvention from central government and inflation, is asking for certified bank statements, letters of commitment from employees, pay slips from those employed, and audited accounts from applicants or those on whom they are dependent who have businesses.
Carol Edwards, marketing and communications manager at the UWI, Mona, said the practice is a standard one used by American universities and other international programmes, which will not consider applications without proof of ability to pay.
"The requirement for financial information has always been there. It is just that we have become more stringent now in terms of the provision of proof," said Edwards.
"We need the information in order to guide applicants in the area of finance, in terms of options available to them, including the Students' Loan Bureau (SLB) and scholarships, some of which are offered by us."
At the UWI, where subventions were again cut in the 2010 Budget, it is projected that fees, which are calculated at 20 per cent of tuition cost, will increase in line with the inflation rate for the 2011-2012 academic year.
The UWI application process, which started in October for most undergraduate programmes, will end on January 31. Edwards said the financial information provided has not, in the past, disadvantaged students who did not demonstrate the ability to pay.
"However, students are required to formally submit a payment plan to which they must strictly adhere if they wish to be guaranteed a continued place at the university," she said.
While the University of Technology has not yet adopted a similar hard line, the institution reported in October that 35 per cent of its approximately 11,000- large student body was unable to pay their fees in full.
Edwards said that although some students were unable to pay their fees in the last semester, they were not deregistered.
"Even though many students did not meet all their financial obligations with the university in the last semester, the campus administration took a decision to allow all students to maintain their registered status and sit all their examinations last semester," she said.
"This decision was taken as a means of providing a longer time period for parents or students to try to honour their financial obligations given the harsh financial realities. Students with outstanding balances were given the opportunity during this period to establish formal payment plans with the campus."
The SLB has indicated that it will require at least J$2.8 billion for loans in 2011-12 if government subvention to tertiary institutions was reduced by the expected 40 per cent.
The UWI and UTech are SLB's main markets, but the student financier also provides loans to students across another 44 tertiary institutions.
In the final quarter of 2010, the lending institution also predicted a doubling in average annual fees to near $500,000 per student by 2012.
Currently, for UWI applicants, in order to show that they are able to cover the cost of tuition fees, books, meals, lodgings, and miscellaneous charges, applicants must provide a certified bank statement or similar certified statement from a financial institution where they have a deposit account in their name.
They must also, where applicable, provide a letter of commitment from employers stating the dollar value of the employers' sponsorship.
Financial providers must provide pay slips or audited accounts. Those applicants who are relying on the SLB, bank, or credit union to cover costs must send in with their application a letter of commitment from the lending agency stating the dollar value of the loan.
Alternatively, they can provide documentation indicating that an application has been made. For those with scholarships and bursaries, a letter of commitment for the donor stating dollar value and duration of the award must be sent in. The financial questionnaire ends with the warning that failure to pay tuition by designated dates would lead to deregistration.
"UWI, Mona, is being more vigilant now because it recognises that many students are facing challenges and would benefit from financial counselling," said Edwards.
"The requirement to complete the forms forces applicants to critically review their financial resources and enables the institution to more easily identify at-risk students ... ."
Still, the communications manager said, ability to pay is not the determining factor in the selection process for entry, but evaluation of academic credentials.