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Higher Education Finance and Access in Comparative Perspective

Higher Education Finance and Access in Comparative Perspective. D. Bruce Johnstone, SUNY Buffalo Expanding Access: Lessons from Abroad ACE Annual Meeting February 2007. Financial Problems of Higher Education Worldwide.

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Higher Education Finance and Access in Comparative Perspective

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  1. Higher Education Finance and Access in Comparative Perspective D. Bruce Johnstone, SUNY Buffalo Expanding Access: Lessons from Abroad ACE Annual Meeting February 2007

  2. Financial Problems of Higher Education Worldwide • Trajectory of costs (per-student and total) increasing faster than revenues (at least public) • Austerity: overcrowding, deterioration of quality, loss of faculty & morale • Tuition fees and other expenses rising (inflation+) • Diminishing relative priority of H. Ed. • Diminished confidence of governments in higher education –especially in faculty & management

  3. Limitations on Higher Ed. Access & Participation Worldwide • Losses at middle and secondary levels • Limitations in higher educational capacity • Limited free or low fee places (dual tuition) • Persisting link between measured ability & aspiration and family class / privilege • Losses or freezing of grant aid • Limited student loans

  4. The Hazards of Generalization: Countries vary greatly in: • Per-capita GDP • Rate of Growth of GDP • Capacity, cost-effectiveness, and progress-ivity of additional taxation • Population growth • % completing academic secondary school • Capacity and diversity of post-secondary options

  5. “hazardous variations” continued • Variations in the political and cultural acceptability of: • Tuition fees • Private higher education • Parental financial responsibility for post-secondary education of children

  6. The Perfect Storm: Financial Limitations on Accessibility … • Low GDP: per capita and low rate of growth • Very low tax capacity: Marginal taxation cost-ineffective, regressive, and detrimental to growth • Substantively & politically compelling queue of competing public needs ahead of higher education • Rapid increase in birth rate & h.s. participation rate  veryrapid growth of higher ed. aspirants • Political culture of entitlement and fear of student movements: great resistance to cost-sharing • Limited capacity for targeting or for lending

  7. Things are Easy… • Substantial additional progressive tax capacity • Substantial tuition-dependent private sector • Acceptance of appropriateness of tuition fees and philanthropy in public sector • Substantial and diversified H Ed. Capacity • Near saturation of participation [?] • low rate of growth of secondary school leavers • Well-developed systems for grants and loans

  8. US Comparative Advantages(Why we get the more higher education capacity for the tax $) • Diversified system (multiple entry points & “horizontal” transfer possibilities) • Substantial private sector • Acceptance of parental financial responsibility for children’s higher ed. • Tradition (and partial subsidization) of philanthropy: public as well as private

  9. US Comparative Advantages(Why we get more higher educational access for the tax $) • Financial Assistance [$134 Billion 2005-06] • Ability to target assistance (on decline) • Abundant loans, minimally subsidized • Ability to tap private capital markets for loans • Capacity & competition: “client seeking” • Recognition of link between privilege and measured academic readiness (GPA / SAT) • Recognition that “race & ethnicity matter” (although on decline)

  10. But We Can Learn … • Better relate repayments to level of income (Australia,UK, Canada, the Netherlands) • Better control of loan defaults through appropriate use of co-signatories • Institute bi-lateral & multi-lateral agreements on student loans • Assure greater transparency on institutional “quality”

  11. Summary: Finance and AccessFour Worldwide Trends • Cost-sharing & other forms of revenue Diversification • Sector Diversification • Budget Reform / Autonomy • Privatization Others [modularizing curriculum, shortening time & conforming 1st degree, enhancing internationalization,]

  12. For More Information: • For additional information, country studies, and papers on international comparative tuition and financial assistance policies, visit the Website of the International Comparative Higher Education Finance and Accessibility Project: • http://www.gse.buffalo.edu/org/IntHigherEdFinance • Bruce Johnstone • University at Buffalo, dbj@buffalo.edu

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