My roommate is having troubles paying for his university education, which is all-around worrisome. He became my roommate when he was first having troubles paying bills. Prior to living with me, free of rent but including utilities, he was living at the pagoda.
He moved to the main town of Siem Reap from his village about 25 kilometers away. His parents are elderly farmers, and he has two younger siblings who are currently in high school. When he came to Siem Reap he was ambitious to find education. He received some training at the pagoda, which offered him a place to sleep. His English improved greatly and he was able to graduate from high school.
He then was selected to study at my workplace, which trains young, disadvantaged students in Hospitality. He trained in the restaurant and was near the top of the class. As he was nearing the time for graduation, our storekeeper at the hotel left his position somewhat suddenly. My roommate was offered the open position, which he took.
At that time, he was 22 and he needed to leave the pagoda, because he was already too old to be staying there without being a monk. So, then he moved in with me, and things have been fine as far as I knew.
We aren't the closest of roommates. We both spend a large amount of our time at work, and after he finishes his job, he goes to university. On his day off, he takes his motorbike home to help his parents with chores and on their farm. Sometimes we would grab a beer together, but lately he does not go out at all.
His expenses include half of the utilities (about $10), his university education, and his motorbike. He eats his meals at the hotel and I provide him a room. I was therefore a bit surprised when he told me that he would be unable to pay his half of the utilities this month. (He said he would pay double next month.)
I don't really care about the utilities. I have a roommate because I don't want to live alone. I want him to pay half of the utilities so that he has some vested interest in the well-being of the house. I was surprised because his monthly expenses are so low. He told me he didn't have any money because he needs to pay back the salary advance he took from the hotel and he also needed to pay for his siblings’ education.
This is worrisome, but I told him that we would sit down and discuss how he was going to manage his expenses so that he doesn't get burdened with debt. If it comes to it, we will talk about whether he needs a student loan. I haven't had that awkward conversation yet, but thinking about the situation, I can't help but wonder why there aren't better systems to provide student loans.
Why are there no merit-based student loans - ones based on your grades, university and major instead of solely on your current ability (or your parents’ ability) to repay? In the US, bank-provided student loans are pretty much just unsecured loan, often cosigned with a parent. Many students in the US rely on credit cards to pay for expenses, which is a terrible idea.
In spite of this, education is perhaps the best investment a person can make. The rates of return are higher than nearly any other investment (especially given the current housing market). It seems then, that loans should be given to students who have a high probability of success out of university, such as engineer and science majors.
Perhaps someone can provide some insight on this issue. I would certainly appreciate it.
