Cost sharing

Cost sharing is considered as a government loan program for higher education student to cover partial cost of teaching and learning. It is applicable to students who have completed there study and who is drew or withdraw public higher learning institution.    The applied ratio is:- 

• Beneficiaries are entitled to born 100% of their food and boarding expenses/costs.  They are expected to cover at least 15% of the total direct cost of education. 

• Every beneficiary who takes 15 credit hours or more than 15 credit hours courses shall pay the full cost for his/her food and boarding expenses and 15% of the total tuition fee calculated for a regular student of his/her department.) 
• Every beneficiary who takes less than 15 credit hours and above 8 credit hours shall pay the full cost for his/her food and boarding expenses and ¾ of the 15% of the total tuition fee calculated for a regular student of his/her department. 
• Every beneficiary who takes less than 9 credit hours and above 5 credit hours shall pay the full cost for his/her food and boarding expenses and ½ of the 15% of the total tuition fee calculated for a regular student of his/her department.
• Every beneficiary who takes less than 6 credit hours shall pay the full cost for his/her food and boarding expenses and ¼ of the 15% of the total tuition fee calculated for a regular student of his/her department. Taking this given fact into consideration to simplify the process the following policy direction is proposed.

                Purpose of the policy

• To attain satisfaction of students who are receiving their cost sharing in cash.
• To set guidelines that would enable students to receive quality cost sharing service.
• Ensure reliable and timely cash payment to the student.

                Scope

• This policy is formulated for all Addis Ababa university students who are receiving their cost sharing in cash

                Definition

•  “University “ means  Addis Ababa University
•  “Cost sharing” means a portion of total project of program costs related to a sponsored agreement that is contributed by someone other than the sponsor. Therefore, the real cost-sharing in Ethiopian Higher Education is the 15% tuition fee share of the student.  The rest 85% is sponsored by the Government.  
•  “Cost-sharing scheme” means the present cost-sharing scheme of the Government or government sponsored learns. Which allows the student to share the tuition fee and requires the student to repay the full cost of boarding and meal and 15% of the tuition fee at the time of employment?  
•  “Eligible Beneficiary” means an Ethiopian studying in a public/Government University/College/Institute that has the privilege to participate in the available cost-sharing scheme of the Government and/or government-sponsored student loan. 
• ·         “Form of benefit” means benefit either in-cash (full), in-kind (full), or partially in-cash and partially in-kind (e.g. boarding in-cash and meal in-kind).
• “Government-sponsored student loan” means Loan provided to an eligible beneficiary (who is an Ethiopian and studying in a public/Government University/College/Institute) for boarding food and other expenses which are mandatory and will be paid in full by the beneficiary after graduation/employment. 
• “In-cash beneficiary” means a beneficiary who receives cash in place of boarding and meal services of the University.
• “In-kind beneficiary” means a beneficiary who receives boarding and meal service from the University. 
• “Office” means the current Cost-sharing Coordination Office of the University. 
• “Student Cost-sharing service delivery´ means a Student Finance Service Delivery of the University.

Guiding principle

• On  time payment of cash for the students who are not receiving accommodation from the University (with in three days, after the registration of the student; and from 26 -28th days of each month)
• To improve quality of cost sharing service which is directly relating  and contributing to the teaching learning process
• To create awareness the rights and obligations of service recipient and the obligation /accountability of finance service providers
• To improve participation of students in cost sharing program

Policy statement

• Providing efficient and effective cost sharing service by reducing the time taken to effect payment by 100%.
• Administer cost sharing service in an excellent and accurate way by using data processing soft wear and/or LAN
• Provision of on time data to relevant finance offices to facilitate on time payment (data shall be provided up to the 20th day of each month)
• Ensure the transparency of cost sharing
• In power students and encourage participation of the students in cost sharing process
• Up-date cost sharing amount annually by assessing the market
• Design compliant handling mechanism
• Create coordination among concerned departments, offices ...etc
• Redesign way of provision of cost sharing money (once in semester or once in three month; through bank or other mechanism)
• Put direction, way of opening bank account (for students)
• Minimize bureaucratic and documentary un efficient work or totally eliminate

Policy authority and interpretation

The president, VP, and Student Affairs process owner are authorized for implementation and interpretation of the policy.

Related policies

Higher Education Proclamation, directives of council of ministers and MOE

Implementation procedure  

• Implementation shall be as directives given from MOE
• As detail procedures prepared by AAU (must be prepared and attached)
• As stated on University rules

Compliance:

Compliance handling office shall be formed at VP’s office or at the office of Students Director office