A Comparison of the financial aid programs administered by JASSO and KOSAF and their implications for Taiwan

Prior to the 1970s, the systems of higher education in most Asia countries had been elitist in nature, but in the past few decades many of these countries have been gradually shifting in the direction of mass higher education. However, in developing countries there is very little public funding for establishing universities and colleges. Thus, many of these new institutions of higher education were established with private funding; to some extent this is similar to the combination of public and private higher education of the American type. In both Japan and South Korea private universities are more numerous than public ones. In terms of the number of institutions of higher education in 2011, private universities accounted for 76.0 percent of the total in Japan, and 86.3 percent of the total in South Korea. In terms of student numbers in 2011, in Japan 73.4 percent were enrolled at private universities, and in South Korea the figure was 80.2 percent. Furthermore, in both countries the tuition at private universities is relatively higher than at public ones. According to a report published by the Organisation for Economic Co-operation and Development (OECD) in 2013, the average annual tuition for the 2011 school year for full-time students at private institutes was US$8,039 in Japan and US$9,383 in South Korea. High tuition and living costs are making government financial aid more important to university students, and leading many students to rely on loans to complete their higher education. In response to the need for an integrated financial support system for students in higher education, Japan has established the Japan Student Services Organization (JASSO) and South Korea has established the Korean Student Aid Foundation (KOSAF).The purpose of this study is to compare the financial aid programs administered by JASSO and KOSAF and offer suggestions for the government of Taiwan in establishing similar organizations in the future. The main methods employed in this study are comparative research and document analysis. The specific aspects of the financial aid programs compared in this study are their scholarship programs; student-loan systems; and financial aid for disadvantaged students. Relevant government policies are also examined. The findings are used to provide suggestions for Taiwan’s future development in the area of student aid.