By Marina Joseph – Art in Tanzania internship
Financial problems are one of the obstacles that students face in college in the twenty-first century. Many students struggle to balance work and school, making ends meet. To address this financial issue, students must adjust their academic and work schedules. Prior education, experience, course demands, and background/history influence the changes and financial challenges students face. With the dramatic rise in college costs, students remain in a precarious financial situation. Classworkloads, a desire for financial and personal independence, and a lack of proper support networks can all contribute to financial difficulties. Higher education students require more funding to cover the costs of studying and living in universities, as the cost of higher education in both public and private institutions continues to rise. Students may face financial difficulties daily due to limited financial resources and increasing educational costs.
Financial problems faced by students could be caused by several problems as discussed below:
- Lately Received Financial Assistance
Hassan, Ismail, and Harun (2013) state that financial assistance, such as student scholarships or student loans, is available. They welcome students on an annual, semester, or monthly basis. The delay is very burdensome since they must depend on other financial tools such as self-financing, family funding, borrowing from others, or applying for emergency loans from their respective HELB organization. This dilemma is beyond the student’s control; they can only wait before obtaining financial aid.
- Limited options as sources of finance
Some students have no other means of support and depend solely on scholarships and student loans. Some students come from low-income or orphaned backgrounds. Perhaps they don’t have any savings because they’ve spent all their money and are reluctant to borrow from anyone, fearing they’ll fall into debt. They may also fear taking part-time work because they don’t want to jeopardize their academic status. According to a 2011 survey by Online Daily News, 10,000 students at Universiti Teknologi Mara came from low-income families. None of these small organisations has yet obtained funding from both public and private sources. Inadequate funding or a lack of financial support burdens students, particularly those from low-income families, as it can negatively impact their academic performance (John Abdullah & Ahmad, 2007).
- Inadequate loan or Scholarship
According to Ahmad (2005), most respondents in a study on financial management trends among students who received PTPTN financial loans at University Putra Malaysia (UPM) felt that the amount of loans they obtained was insufficient to cover the cost of living and education. Students must pay for utilities and equipment needed for their studies, as well as room rent, regular meal and drink expenses, public transportation or gas fares, and other expenses. Even if they made every attempt to cut costs, the loan or scholarship is still insufficient.
Daud, Norwani, & Yusof (2018) conducted a study about financial problems facing students at higher levels of education and found the following to be economic problems that students in universities associated with
- There are always expenses that exceed the income received.
- Using savings for basic needs expenses.
- Constantly worrying about financial resources.
- Buying items using credit
- There is no excess of money to make savings
- Cannot afford the related bills such as mobile phone bills.
- Cannot repay the loan borrowed.
- Looking for a loan to cover the cost of living expenses
- I do not know where the money was spent.
- Not sure about the amount of debt incurred.
- Take new debt to cover old debt
- Have no savings for emergency time.
- Not able to buy the desired item
- Taking cash from credit card
- Cannot focus on lessons due to financial problems
Ultimately, financial difficulties are a significant issue in the lives of today’s students. Furthermore, attempting to work and attend school simultaneously can be extremely difficult. Education costs are skyrocketing, but students have no other means of support. Working part-time is often the most effective way to earn money. Time management, proper budgeting, self-discipline, financial education programs, and behaviour modification can all help to solve the problems that come with it.
REFERENCES
Ahmad, M. M. (2005). Kajian Pola Pengurusan Kewangan di Kalangan Pelajar yang Menerima Pinjaman Kewangan Perbadanan Tabung Tinggi Nasional (PTPTN) di Universiti Putra Malaysia (UPM).
Daud, N., Norwani, N. M., & Yusof, R. (2018). Students Financial Problems in Higher Education Institutions. International Journal of Academic Research in Business and Social Sciences, 8(10), 1558–1565.
Hassan, H., Ismail, N., & Harun, H. (2013). Kajian Terhadap Pengurusan Wang Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) Dalam Kalangan Pelajar Semester Enam Politeknik Tuanku Sultanah Bahiyah, Jabatan Pengajian Am Politeknik Tuanku Sultanah Bahiyah, Kulim, Kedah. John Abdullah, S. A. & Ahmad, H. (2007). Kewangan & Pelajar IPT. Kuala Lumpur: Utusan Publications & Distributors Sdn Bhd.
