April 5, 2018

The average amount of money parents borrowed associated with their children's entering private universities/colleges in the Tokyo metropolitan area hit a record high last year.

The Tokyo Federation of Private University Faculty and Staff Unions on April 4 released the results of a survey highlighting the fact that many households shoulder heavy financial burdens because of high tuitions and enrollment fees.

According to the survey, the cost needed for just the first year at a private institution for students who live apart from parents was 2.97 million yen on average, and that his/her first-year costs accounted for about one third of the average yearly earnings of a household.

The total amount of debt entailed for university/college entrance increased to a record 1.98 million yen, up 150,000 yen from the previous year. More than 90% of families answered that they are enduring "heavy" burdens in terms of all the costs associated with entering universities starting with the cost for taking entrance exams to actual admissions.

Toyo University Professor Ono Hiroyuki at a press conference held on the same day pointed out, "The increase in loans taken means heavier burdens on parents to repay the debt even after their children's graduation. This may affect children as well in their choice of occupations or they may have to endure heavy workloads after they start working."

The survey also shows that the average amount of remittance from parents to a student who goes to a private university/college in Tokyo area was 86,100 yen a month, which was the second lowest level and the 16th straight year of decline.

In regard to this, Prof. Ono said, "It's not surprising because workers' actual wages stay stagnant while Abenomics is trumpeted as highly effective."

Past related article:
> Remittances to private university students hit record low: union survey [April 6, 2017]
> Private university students in Tokyo area live on only 850 yen a day: union survey [April 7, 2016]