Higher education students face growing debt
The soaring cost of living and the increasing popularity of private academic institutions have left Israeli higher eduction students with rising debts, the National Union of Israeli Students warned on Sunday as the 2019-20 academic year gets underway.
Based on an annual survey of approximately 8,000 students across the country, the union said that the average monthly expenditure per student stands at about NIS 5,477. Meanwhile, average monthly earnings for working students stood at NIS 4,643 – an NIS 34% decrease since 2018.
The survey also found significant differences in earnings between male and female students.
Approximately 28% of students earned less than NIS 2,000 per month and 58% of students earned less than NIS 4,000, according to the survey.
Average monthly expenditure for students across the country increased by NIS 290 (6%) since last year. The most significant increase was recorded in monthly spending on food, which increased
by NIS 86 (8%) to NIS 1,138. Accommodation prices also increased by NIS 103 (4%) to NIS 2,541 per month.
“Prices are constantly rising and the cost of living continues to be a burden for every young man and woman in this country, from the South to the North,” said National Union of Israeli Students chairman Shlomi Yehiav. “A reality is developing where financial backing or the pursuit of scholarships will determine how a student’s higher education will look, if it occurs at all. We will not accept this reality, and we will continue to work to reduce costs and remove barriers to entry into higher education.”
While the country’s public university system and majority of colleges are state-subsidized and have annual undergraduate tuition costs of NIS 10,259, private colleges have increased in popularity in recent years, reaching up to NIS 49,500 per year in tuition fees.
The number of new undergraduate students in private colleges jumped by 13.8% between the 2017-18 academic year and 201819, reaching a total of approximately 44,500 students – or onesixth of the entire student body.
The overwhelming majority of higher education students (84%) said they worked during their studies, with some 68% working all year round, including parttime employment. Another 10% only work during vacations and 6% said they work only during the academic year. The number of working students increased by 3% since the survey was conducted in 2018.
The average student worked 96 hours per month for a second consecutive year, recording an increase of 20 monthly hours since the survey was conducted in 2013. Almost one-quarter of students (23%) said they worked at least 151 hours per month.
Significant differences in gross monthly wages were identified between men and women. On average, male students earned NIS 5,942 per month compared to just NIS 3,970 among female students.
Notable disparities in average monthly wages were also noted among students in different types of higher education institutions. Highest gross monthly salaries were found among non-subsidized, private colleges, with an average of NIS 6,257. The lowest average monthly salary of NIS 3,700 was earned by students of subsidized colleges. Public university students earned an average of NIS 4,562, slightly above the national average.
When evaluated according to field of study, highest salaries were recorded by students of management and business administration degrees, who earned an average of NIS 7,137. The majority of students pursuing such degrees, however, are master’s students and often work full-time in addition to studying.
The lowest average earners were students of medicine and dentistry, who earned an average of NIS 3,109. Arts and life sciences students were also among the lowest earners.
Among the 16% of students who stated that they do not work at all, 70% said that the nature of their studies does not permit them to find employment. A further 11% said that their area of residence does not offer sufficient work opportunities, and 7% said they did not need to work.
Looking to the future, more than one-quarter (27%) of students said they did not believe they would be capable of buying an apartment in their lifetime, an increase of 2% since last year.
A total of 37% of students stated that they would likely purchase an apartment, and an additional 11% said they had already bought a property. One-quarter of students said they were unsure or did not wish to answer. •