The Abe administration has decided to introduce scholarships for students from low-income families at universities and vocational schools starting in fiscal 2018. Since many students rely on student loans to pay for higher education, the launch of government-sponsored scholarships, which do not need to be paid back, is a meaningful first step. But the scope of the program is too small. The government needs to expand the program so that youths with a strong academic motivation will not have to give up their studies for financial reasons.
Under the fiscal 2017 budget, a ¥7 billion fund will be set up within the Japan Students Services Organization (JASSO) to provide scholarships to students from low-income households that are exempted from paying residential taxes. Beginning in fiscal 2018, about 20,000 students will be eligible for the scholarships. Students at public universities who live with their parents will receive a monthly allowance of ¥20,000; students of such schools living away from their parents and students attending private universities who live with their parents will get ¥30,000 and students at private universities who live away from their parents will receive ¥40,000. Youths from facilities for orphaned, neglected or abused children will also get a lump sum of ¥240,000 for entrance fees. As a preliminary step, the organization will give scholarships to 2,650 students in fiscal 2017.
The government decrees that if students who have received scholarships do not perform well academically, the payment may be halted or the students will be asked to return what they have received.