Vice Chancellor of the University of the South Pacific, Professor Rajesh Chandra has alerted USP member governments and sponsors that the 20 percent devaluation of the Fiji dollar could have adverse impacts on students.

In a letter to the Pro Vice Chancellor, ministers and members of the USP Council, Professor Chandra says he has had meetings with representatives of student associations at Laucala Campus who asked him to indicate the issue to their sponsors.

He says with the devaluation, costs would rise and sponsors should consider adjusting allowances paid to students.

Professor Chandra encourages governments and sponsors to consider the matter sympathetically.

The Solomon Islands Student Association at Laucala Campus is understood to have made a submission on issue of increased costs to the Ministry of Education.

But Education Permanent Secretary Mylyne Kuve has responded saying the ministry will not consider the request at this stage.

Mrs Kuve says the ministry will only process the normal allowance to students when it receives funding from the Republic of China.

She says government has placed a 35 percent reservation on the 2009 budget as a measure to manage the current economic situation.

Mrs Kuve says the ministry will only consider the request if government's financial situation improves.

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