Self-Financing Higher Education in Hong Kong refers to educational programmes at the sub-degree level and above provided by local self-financing entities. Since the government announced the target of enabling 60% of secondary school graduates to receive higher education, the self-financing post-secondary education sector has experienced significant expansion with the aim of accommodating the emerging needs of the society.Tung, C. H. 2000. Policy Address 2000. Hong Kong: Government Printer. http://www.policyaddress.gov.hk/pa00/hlight_e.htm.
Background
Changing needs of knowledge-based economy The emergence of knowledge-based economy has often been highlighted by the government in explaining its initiatives in the Higher Education sector.University Grants Committee (2010). "Aspirations for the Higher Education System in Hong Kong: Report of the University Grants Committee", December. The changing manpower needs of a knowledge-based economy increases the demand for higher education around the world. As a knowledge-based economy depends upon knowledge and its agile applications, it requires an educated population and the corresponding massification of post-secondary education.
Massification since 1990s During the early period of British colonial rule, higher education served as a platform for the British Empire to train Chinese elites who were likely to become government officials in the future.Mellor, B. 1992. Lugard in Hong Kong: Empires, Education and a Governor at Work 1907–1912. Hong Kong: University of Hong Kong Press. Only 2579 students (2.2% of the relevant age groups) were enrolled as first-year students in local university degree programmes in 1980.Lee, Siu-yau(2015). Massification without equalisation: the politics of higher education, graduate employment and social mobility in Hong Kong. Journal of Education and Work.
However, the higher education sector began to experience rapid massification since the 1990s. The most significant move in massification is encapsulated by the Chief Executive's policy in 2000, which sets the target of raising the participation rate in post-secondary education from 33% to 60% in ten years’ time.Education and Manpower Bureau (2008). "Steering Committee Report of the Phase Two Review of the Post Secondary Education Sector", April. The objective has been achieved in the middle of the decade due to the rapid expansion of the self-financing post-secondary institutions.Lo, J., Yung W. K. and Feng, Q. (2014). The Development and Challenges of Self-financing Higher Education in Hong Kong. Public Administration and Policy, 18(1), 75-88.
Growth of self-financing institutions In 2017, 61,600 secondary school graduates attended the Hong Kong Diploma of Secondary Education (HKDSE) Examination. Around 28,000 achieved results that met the admission criteria for a university degree, while only 12,700 of them could enrol in the government-funded degree programmes offered by eight universities in Hong Kong through the Joint University Programmes Admission System (JUPAS). Given the large number of academically qualified candidates, the government-funded bachelor's degree cannot provide sufficient places for the graduates, which gives the self-financing institutions a crucial role in meeting the rising demand.
Modes of operation
Publicly funded post-secondary education institutions
They offer programmes through their self-financing continuing and professional education arms or member institutions under their aegis. These institutions include the eight UGC-funded institutions, and the Hong Kong Academy of Performing Arts.Legislative Council Panel on Education (2012). "Self-financing Post-secondary Education Sector", LC Paper No. CB(2)1694/11-12(08), 20 April.
Self-financing post-secondary institutions These institutions include: The seven approved post-secondary colleges registered under the Post-Secondary Colleges Ordinance (Cap. 320), including Caritas Institute of Higher Education Centennial College Chu Hai College of Higher Education Hang Seng Management College Hong Kong Nang Yan College of Higher Education Hong Kong Shue Yan University Tung Wah College UOW College Hong Kong the Open University of Hong Kong, which is a statutory institution operating on a self-financing basis; the Technological and Higher Education Institute of Hong Kong, Vocational Training Council.
Operators of self-financing locally accredited post-secondary programmes and non-local programmes Locally accredited post-secondary programmes, including: Hong Kong College of Technology Hong Kong Institute of Technology and Savannah College of Art and Design 1200 non-local courses registered or exempted under the Non-local High and Professional Education (Regulation) Ordinance (Cap.493)
Key government policies Financial Support Over the years, the Government has provided a series of financial schemes to support self-financing higher education institutions, including:
Start-up Loan Scheme (2001) Interest-free loans provided to self-financing higher education institutions for the construction of new premises or renovation/extension of existing premises. Self-financing Higher Education Fund (2011) A $2.5 billion fund is established for awarding scholarships to outstanding students who study full-time in locally accredited self-financing programmes. Quality Enhancement Grant Scheme (2012) A scheme aiming to support initiatives or projects which promote better teaching and learning experience of self-financing programmes. Research Endowment Fund (2012) A $3 billion fund established to support academic enhancement and research development for a total of eleven institutions which provide locally accredited self-financing degree programmes. Student Financial Assistance Schemes The Student Finance Office provides both means-tested and non-means-tested financial assistance schemes for students attending self-financing programmes. These schemes include Financial Assistance Scheme for Post-secondary Students (FASP) (for full-time students, means-tested) and Non-means-tested Loan Scheme for Post-secondary Students (NLSPS). Study Subsidy Scheme for Designated Professions/Sectors (SSSDP) The scheme was first launched in the 2015/16 academic year. It subsidized around 1000 students per cohort to pursue designated full-time locally accredited self-financing undergraduate programmes in selected disciplines. The scheme will increase the number of subsidized places to around 3000 students per cohort in the 2018/19 academic year.
Quality Assurance Currently in Hong Kong, three bodies are responsible for quality assurance of programmes offered by higher education institutions. In order to receive local accreditation, the programme has to satisfy the standards of the Hong Kong Qualifications Framework (QF) to ensure credibility and recognition. Hong Kong Council for Accreditation of Academic and Vocational Qualifications (HKCAAVQ): It is responsible for accreditation and qualification registration of programmes offered by all non-UGC-funded institutions. It monitors the compliance of both the operation (e.g. governance structure, financial condition, etc.) and programme quality (e.g. quality of teaching and learning, academic standard, etc.) with the requirements stipulated in the Hong Kong Qualification Framework. Quality Assurance Council (QAC): QAC was established in 2007 under the University Grants Committee (UGC). The main responsibility of QAC is to conduct quality audits of all programmes, both Government-funded and self-financed programmes included, offered by UGC-funded institutions. Joint Quality Review Committee (JQRC): JQRC was established in 2005 by the Heads of Universities Committee. It is responsible for providing peer review on the quality assurance processes of self-financing sub-degree programmes offered by UGC-funded institutions. The objective is to ensure quality assurance assessments achieve the requirements of the Hong Kong Qualification Framework.
Recognition of Associate Degrees The qualification of associate degree is recognized by around 26 professional bodies in Hong Kong, such as information technology, logistics, financial services, etc. For recruitment in the civil service, the Civil Service Bureau started accepting locally accredited associate degree qualifications (as broadly equivalent to Higher Diploma qualifications) since 2001. There are more than 70 grades that accept applications from associate degree holders (who hold associate degree as one's highest qualification), including 13 grades that require higher diploma qualifications or below, and other grades that require qualifications below sub-degree level.
Non-means-tested Subsidy Scheme for Self-financing Undergraduate Studies Under Carrie Lam's administration, the government introduced a non-means-tested annual subsidy for eligible students pursuing full-time locally accredited self-financing undergraduate programmes in Hong Kong. The subsidy scheme provides a $30,000 subsidy to Hong Kong students who have either attained (a) “3322” in Hong Kong Diploma for Secondary Education Examination (HKDSE) or (b) sub-degree qualifications at the time when they are enrolled in the selected self-financing undergraduate degree programs.
However, the scheme does not cover UGC-funded degree and sub-degree programs, self-financing degree programs at UGC-funded universities and sub-degree programs, including associate degrees and higher diplomas, offered by private universities and colleges. According to Kevin Yeung Yun-hung, Deputy Education Chief, sub-degree programs are not covered in the subsidy scheme as the government has to evaluate their value and orientation in the market.
The introduction of the subsidy scheme had led to the reduction of the tuition fees level in private universities and colleges. Prior to the subsidy scheme, most of the self-financing degree programs charged students HKD $60,000 - $130,000 a year. Under the new subsidy scheme, the tuition fees for most self-financing degree programs drop to HKD$24,000 - $99,030. Some institutions even have a tuition fee level lower than the one at publicly funded universities. Students reading eligible private college degree programs will therefore benefit directly from reduced tuition fees and financial burden. Self-financing institutionsPre-subsidy tuition feesPost-subsidy tuition feesCentennial College$89,000$59,000Heng Seng Management College$77,400$47,400Open University of Hong Kong$71,360 - $115,920$41,360 - $85,920Tung Wah College$54,000 - $129,030$24,000 - $99,030Chu Hai College of Higher Education$69,000$39,000Gratia Christian College$63,000$33,000UOW College Hong Kong$69,000$39,000