Tuitions & my thoughts

I was arguing with one Singaporean friend on the tuition fees for local universities. We argued two different things on the same topic. Anyway, I was saying that almost every Singaporean pays 8k/9k for their tuition fees to uni although the actual price is 20k+. So, I was telling him why the government and the uni just tell the Singaporean students to pay 8k/9k and save the time to go through the application of the grants to its citizens cos at the end of the day every citizen can get the grants. Since S'poreans are famous for being practical, why doesn't the government save time cos they'll get 8k/9k from the students in the end? Then, some people might say there are some people who can afford 20k+ and save the government money for the needy. In that case, the government can tell these people to donate the money to the needy while charging 8k/9k to every student (Students here mean citizens only cos it can be argued that Foreigners are not paying that tax. So, let's assume the local only). My stand is that if those, who wanna pay 20k+ without taking the subsidy 'cos they think the govt can save that subsidy for the needy, are philanthropic enough to donate money to the needy. In current system, even though some can afford 20k+, they will still take the grant cos they'll feel that this is their right to take their parents' taxes. So, as a result, how much can government save from the subsidy budget? If they tell the citizens that the actual cost for each student is more than 20k+ but we'll charge you only 8k/9k but in return please donate if you are rich and care for the needy.

Case 1: People are not philanthropic (everyone taking grant in current system or no one donates in the second system)

It's still the same effect for the government as current system where almost everyone taking the grant. The government still has to pay 12k to the uni for the students.

Case 2: People are philanthropic (some will pay full fees or some will donate)

In this case, let's compare how many people will pay full fees or how many will donate? When you get a discounted price, will u ever pay full price? Human beings are not that stupid enough to give up their opportunties. If we think they'll pay full price cos these money can be used for the needy, then even when we change the system, they are still willinging to donate. In current system, if some can afford say 15k but not 20k, they have to take the grant so they pay 8k/9k. But, in new system, they only have to pay 8k/9k and if they are told that they can donate for the needy, they'll at least donate some (assuming same people with same generocity for two cases). It may be 1k or 2k. But, government still can save their budget and the needy can benefit.

Well, this is my personal opinion and I don't mean to insult anyone.

If I were a S'porean, I won't pay full price cos the rest are also paying the after subsidized amount. And my parents pay tax to the government, so I should use what my parents pay for the government. Even if I were super generous, I'd still take the grant and donate money somewhere. Anyway, the current system seems like the price is marked up and discounted so that the final price is the same. But, people think they get discounts. Some might say the government doesn't mark up the price. I agree on that. But, in the current system the final price they receive is just 8k/9k cos everyone takes the grants. So, this 8k/9k is their effective price. They mark up to 20k+ (although it's supposed to the actual price) and discounted back to 8k/9k. So, it gives me the feeling of any discount sales. But, is it a healthy way of treating education? I feel that education shouldn't be cheap (I don't mean the fees we pay but the way we treasure it). I might be wrong, but still ...

Another topic: Grant Vs Scholarship

My friend was telling me the government subsidizes them so that people will study hard cos they know it's not expensive. But, I think people will study harder in case of scholarship cos they need to maintain their GPA to be eligibe for the scholarship. However, I still feel that grant is better 'cos not everyone are equally smart and there might be someone who is poor yet not smart enough to get the scholarship. If we think for the whole society, maybe grant is better. But, personally I feel that I'd study harder if I go to the States 'cos there is no government grants.