Abstract

http://ssrn.com/abstract=1810137
 
 

References (50)



 


 



Income Support for Higher Education Through Income Contingent Loans


Tim Higgins


Australian National University (ANU) - College of Business and Economics

March 1, 2011


Abstract:     
This paper argues that an income contingent loan (ICL) should be considered for tertiary student living costs as a supplement to existing income support policy in Australia. It is shown that income support remains insufficient despite recent improvements to policy, and that as little as $1,500 per annum could result in improved participation and educational outcomes for many existing and prospective students. The case for an ICL is put forward and advantages and disadvantages are discussed, including observations from proponents and critics of ICL policy. The key features for consideration in policy design are described, including eligibility criteria to mitigate adverse selection. Implicit taxpayer subsidies are calculated for a hypothetical scheme under both a loan surcharge and real loan indexation arrangements. It is argued that a surcharge would be more attractive to students, and cross-subsidisation from higher earning to lower earning graduates would reduce the costs to taxpayers.

Number of Pages in PDF File: 18

Keywords: Income Contingent Loan, Income Support, HECS, Higher Education

JEL Classification: I22, I28, H52

working papers series


Download This Paper

Date posted: April 18, 2011 ; Last revised: May 10, 2011

Suggested Citation

Higgins, Tim, Income Support for Higher Education Through Income Contingent Loans (March 1, 2011). Available at SSRN: http://ssrn.com/abstract=1810137 or http://dx.doi.org/10.2139/ssrn.1810137

Contact Information

Tim Higgins (Contact Author)
Australian National University (ANU) - College of Business and Economics ( email )
Canberra
Australia
Feedback to SSRN


Paper statistics
Abstract Views: 340
Downloads: 46
References:  50

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.297 seconds