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Financing schemes for higher education

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  • Maria Racionero
  • Elena Del Rey

Abstract

Most industrial countries have traditionally subsidized the provision of higher education. Several alternative financing schemes, which rely on larger contributions from students, are being increasingly adopted. Schemes such as income contingent loans, like the Australian Higher Education Contribution Scheme (HECS), provide insurance against uncertain educational outcomes. This paper analyses alternative financing schemes for higher education, with particular emphasis on the insurance role and its effect on higher education participation.

Suggested Citation

  • Maria Racionero & Elena Del Rey, 2006. "Financing schemes for higher education," ANU Working Papers in Economics and Econometrics 2006-460, Australian National University, College of Business and Economics, School of Economics.
    • Handle: RePEc:acb:cbeeco:2006-460
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    File URL: https://www.cbe.anu.edu.au/researchpapers/econ/wp460.pdf
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    References listed on IDEAS

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    1. Bruce Chapman & Andrew Leigh, 2009. "Do Very High Tax Rates Induce Bunching? Implications for the Design of Income Contingent Loan Schemes," The Economic Record, The Economic Society of Australia, vol. 85(270), pages 276-289, September.
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    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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