Allowances sent from home to freshmen at private colleges in the 2012 academic year fell to a record low average of ¥89,500 per month, a recent Tokyo college staff union poll has found.
High-risk financial instruments—such as currency derivatives and “power reverse dual currency bonds”—were attractive to universities and other nonprofit organizations, including temples and hospitals, because they offered what appeared to be safe returns that were higher than those from government bonds. The investments peaked just before the global recession hit. Fujita Health University later lost $240-million, and Nanzan University $230-million. Hundreds of lawsuits over the losses are pending.
The Promotion and Mutual Aid Corporation for Private Schools of Japan said Friday that just 40.3% of private universities failed to reach capacity this financial year.
Facing a shrinking pool of young people because of the declining birthrate, four top private colleges in western Japan are setting up offices abroad to lure bright foreign students, utilizing attractions such as nanotechnology and geisha in Kyoto.