The Palestinian economy and the standard of living of the Palestinian families is highly affected by the Israeli practices, curfew, closure, checkpoints, segregation wall, the distortion of the Palestinian infrastructure. All these Israeli practices are the main reason for the increase in the poverty and unemployment rates in Palestine.

According to Palestinian Central Bureau of Statistic PCBS:

1. The second Intifada “Al-Aqsa Intifada caused the poverty rate to reach 29.5% in 2005 compared with 20.3% in 1998 an increase of 9.2%. This ratio is projected to reach 45.2% in 2006.

2. unemployment rate reaches 23.6% in 2006

According to International Labour Organization - UN specialized agency nearly 2.4 million Palestinian lives in poverty.

The hardship of the Palestinians continue to divert Palestinian youth from the track of education, despite the programs launched to assist Palestinians in term of education -which is not much-, ultimately create a dependent generation that will be unable to overcome the challenges of today's world, and the problem of Palestinian society. 63.1% of humanitarian aid is provided to cover basic necessities such as medical services, clothing and food.

According to Student Affair Deanship records in AQU, the students affected by the overall Palestinian socio-economical situation, pass through very bad situations that reflect on their ability to meet their daily and university needs. The students' social and economical situations for the year 2007 are classified as follow:

And

• 7% of Al-Quds Students are orphans; they have lost their Breadwinner

• 5% of Al-Quds Students are registered at the Ministry of Social Affairs as a needy one; they had no source of income

• 3% of Al-Quds students suffer from physical retardation or a chronic disease

• 8% of Al-Quds students have at least one of his family member suffer from physical, or mental retardation or a chronic disease

• 9% of Al-Quds students have more than one sibling attending university

• 68% of Al-Quds students suffer from dire socio-economical conditions

AQU students' failure to cover their tuition fee in full - tuition fees are only 60% of the actual educational cost - had results in increasing students' debts. The students debts amount to 2,416,839 in US Dollar, classified as follow: 

• Students' debts: 1,724,886 in US Dollar

• Graduates debts: 691,953 in US Dollar. Graduates with arrears are unable to receive their certificates and apply for job.