Asian Economy Affecting Students
1998-09-03

Category Time Year Nations Thailand Indonesia Philippines South Korea New Zealand U.S. Japan Australia Malaysia States California University Massachusetts Institute of Technology Category 2007

WASHINGTON - American college students are expected to pay about 5 percent more for tuition this year. But for Suthira Tepnupa, who had to buy her education dollars with devalued Thai baht, the increase is closer to 33 percent.

Asia's financial meltdown is forcing some of the 260,000 students who come from the region to seek cheaper housing, reduce classloads, get part-time jobs or transfer to schools in countries where they can get a better deal.

``Making ends meet has become more difficult for all Asian students,'' said Tepnupa, 32, who hopes to complete a master's degree program at George Mason University in Fairfax, Va. ``Some are moving to cheaper places, others are getting part-time jobs or going into their savings more than they expected to.''

The financial crisis began last summer when Thailand floated its currency, the baht, which then went into a tailspin, triggering currency meltdowns across once-booming Asia.

In some schools where growing numbers of Asians have achieved glowing academic success, enrollment is slipping.

The Immigration and Naturalization Service has stepped in to loosen work rules for foreign students. Some governments are offering loans that can be paid back in the local currency. And a few schools are adjusting student grants to make up for falling exchange rates.

But other schools have not made adjustments, and increasing numbers of students are finding that currency devaluations, bankruptcies and stock market losses at home have put education in America out of their reach.

``All of us expect the (enrollment ) numbers to be down,'' said Alan Goodman, president of the New York-based Institute for International Education. ``They began to go down in the last academic year and whatever they were, you can add 5 percent for this year.''

He said the Asian financial crisis has prompted some students to turn to less costly education alternatives in Australia and New Zealand.

Admissions officials and diplomats from Asian countries responsible for education matters said cash-strapped governments in the region are scaling back financing of students already here and not sending as many new scholars to replace them.

Colleges and universities have noticed the biggest impact in intensive English language programs, which serve as a gateway for students in academic studies. According to the IIE, enrollments in these programs by Asian students have declined by 20 percent to 50 percent.

The institute said 57 percent of the 458,000 foreign college students in the United States are from Asia. These students, it said, inject $7 billion into the U.S. economy each year.

Most of the students -- 67 percent -- use their own funds and are expected to pay full costs, which can range from $5,000 to $40,000 a year.

Currency devaluations have increased costs by 80 percent for Indonesians since last year, 44 percent for South Koreans, 23 percent for Japanese, 33 percent for Thais and Filipinos, and 23 percent for Japanese. Japan tops the list of the number of students in the United States from affected countries, with 46,292 last year. South Korea had 37,130; Thailand, 13,481; Indonesia, 12,500; and the Philippines, 2,796.

Ted Goode of Services for International Students and Scholars at the University of California, Berkeley, said despite financial worries enrollment of Asian students -- 1,250 last year -- was relatively stable although he knew of a dozen students who had dropped out last semester.

``While there may be an immediate significant hardship, it's still a significant investment that the family is embarking on and want to continue and maintain as long as possible,'' he said.

Stan Hudson, director of financial aid at the Massachusetts Institute of Technology, said his office has made special arrangements to help Asian students. Aid grants usually determined in the spring are being adjusted according to the latest exchange rates this fall, he said.

Chamnong Sangmachai, Thai embassy education officer in Washington, confirmed cutbacks in response to the financial crisis. He also said the government had reduced the monthly help these students receive from $1,100 to $1,000.

``Those students who are here will be allowed to stay, but the number of new Thai scholars is being reduced,'' he said.

Yaya Abdul Muhaimin, Indonesian Embassy education officer, said he is pointing students to the U.S.-ASEAN business council, which has $4 million in scholarship funds from U.S. companies doing business in Southeast Asia.

He also said the government has helped Indonesian students obtain low-interest loans that are repayable in the country's currency, the rupiah, over three years.

Muhaimin said he urges students to get work permits so they can defray some of their expenses with jobs.

Some Asian students can benefit from new INS rules that allow students who are supported by parents living in Indonesia, Malaysia, the Philippines, South Korea and Thailand to work more than the previously allowed 20 hours a week.

The INS also will let students take less than a full courseload and still maintain their student visa status, as long as individual schools approve. [AP]