Author: Evelyn Brody
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This article uses the case of paying for a college education to study broad issues of equity, both between families and between generations. As a normative matter, I argue that we should subsidize the education of those who are disadvantaged, but that is because a college education generally 'pays off,' society as a whole should not subsidize most students. Rather, the government can serve the valuable function of simply ensuring that students have access to sufficient loans to finance their education. Congress recently enacted President Clinton's proposal to convert the federal role from a guarantor of student loans to a direct lender (for a phased-in portion of student loans). Direct lending will allow a novel repayment option: the graduate can elect to repay the government out of a modest percentage of her future income.Much of the article explores the difficulties of trying to determine an individual's financial resources, so that the government can best target its subsidies. When do we view the child separately from his family? When is it proper to look to a student's lifetime rather than current resources? Using the public finance literature, I examine the limitations of our governmental redistributive tools.Happily, most of the conceptual difficulties melt away in the face of an income-contingent repayment mechanism, which basically matches payments of principal and interest to the profits from an education. For most graduates, a percentage-of-income cap is the only real insurance they need against doing poorly in the job market. However, because President Clinton's proposal perpetuated existing federal subsidies in the guaranteed student loan program, Congress missed the opportunity to make the program fairer by applying analyses based on intergenerational equity and lifetime income.
Author: Timothy Higgins
Publisher: Springer
ISBN: 1137413204
Category : Business & Economics
Languages : en
Pages : 312
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Book Description
This study explores the prospect of the application of the basic principles of ICL into many other potential areas of social and economic policy. Using case studies it evaluates previously implemented ICL schemes where interest rate subsidies are usually the norm, and questions the merits of this approach.
Author: National Association of Student Financial Aid Administrators (NASFAA)
Publisher:
ISBN:
Category :
Languages : en
Pages : 13
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Book Description
There is remarkable diversity in student loan systems throughout the world. In considering the ideal approach to system of loan repayment based on income here in the United States, it is valuable to examine the nature, successes, and failures of some other countries' methods of offering borrowers income-contingent student loan repayment. Two countries that seem to be particularly relevant to the efforts of this consortium are Australia and the Netherlands. While far from the only countries that use an income-contingent student loan repayment scheme, these two were selected for analysis because of the differences they illustrate: a "pure" system in the case of Australia and a "hybrid" system in the case of the Netherlands. This consortium's proposal for an auto-IBR system in "Automatic for the Borrower: How Repayment Based on Income Can Reduce Loan Defaults and Manage Risk" represents an ideological shift in the student loan system in the United States; a potentially complicated restructuring of the current system that would involve several government agencies. In striving for something simple, efficient and fair there is always a chance for unintended consequences; thus, there is value in looking to other countries to draw instruction from their experiences. In the two countries surveyed, there seems to be a delicate balance between uptake rate and overall cohort repayment rate. The Netherlands system suffers from a lack of participation, partially as a result of its opt-in nature, but the Australian system suffers from a substantial amount of debt that is unlikely to be repaid. Policymakers should consider this balance when they set objectives for an auto-IBR system and design the system to maximize participation while protecting against providing excessive loan forgiveness or opportunity for non-payment. [This paper accompanies "Automatic for the Borrower: How Repayment Based on Income Can Reduce Loan Defaults and Manage Risk" ED558514.].
Author: Bruce Chapman
Publisher: Routledge
ISBN: 1134444338
Category : Business & Economics
Languages : en
Pages : 286
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Book Description
As higher education rates increase throughout the westernised world, student support is recognised as crucial in many countries. This new book by Bruce Chapman analyses income contingent loans and particularly their use in supporting students.
Author:
Publisher:
ISBN:
Category : Government publications
Languages : en
Pages : 36
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Book Description
Author: Timothy Higgins
Publisher: Springer
ISBN: 1137413204
Category : Business & Economics
Languages : en
Pages : 280
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Book Description
This study explores the prospect of the application of the basic principles of ICL into many other potential areas of social and economic policy. Using case studies it evaluates previously implemented ICL schemes where interest rate subsidies are usually the norm, and questions the merits of this approach.
Author: D. Bruce Johnstone
Publisher: BRILL
ISBN: 9087900937
Category : Education
Languages : en
Pages : 312
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Book Description
The underlying theory of cost-sharing as well as the description of its worldwide reach were developed from 1986 through 2006 mainly by the works of Johnstone and his Ford Foundation financed International Higher Education Finance and Accessibility Project at the State University of New York at Buffalo. The principal papers from this project are reproduced in this volume. They examine the worldwide shift in the burden of higher education costs from governments and taxpayers to parents and students, and the policies of grants, loans and other governmental interventions designed to maintain higher educational accessibility in the face of this shift.
Author: N. A. Barr
Publisher: Psychology Press
ISBN: 9780415348577
Category : Education, Higher
Languages : en
Pages : 340
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Book Description
Nicholas Barr is the main expert in the funding of higher education in Britain, and has been active both in commentating on the process and in its implementation.
Author: United States
Publisher:
ISBN:
Category : Education, Higher
Languages : en
Pages : 432
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Book Description
Author: Pedro N. Teixeira
Publisher: Springer Science & Business Media
ISBN: 140204660X
Category : Education
Languages : en
Pages : 364
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Book Description
The demand and the costs for higher education have risen steeply in recent years. The most common response worldwide has been some form of cost sharing: shifting per-student costs from governments and taxpayers to parents and students. This timely book provides a comprehensive discussion of the concepts and consequences of cost-sharing in higher education. It offers a comparative approach based on several national case-studies, and proposes alternatives to prevalent approaches.
