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Higher Education: Following Option Government May Consider To

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Higher education

Governments supports student through individual grants or student loans. Comparably mostly rely on
student loans namely student based funding.
Student voucher is one of the funding mechanism approach which discussed for the most part for
primary and secondary schools, although some suggested application for higher education.
SBF would increase higher education system’s equity via increasing accessibility thru stimulating
increased provision of higher education places.
SBF technique promotes:
1- Competition at student level:- government limits student financial aid by sitting criteria based on
ability or need.
(A simple scenario would be to take a university system. where the government was
providing subsidies to institutions,averaging say $10,000 per year,for 10,000
students.The government could remove those subsidies to institutions and
grant10,0000 students a year a voucher worth$1,0000 .Institutions would be free to
set tuition fees,and some would raise them beyond the size of the voucher. From an
immediate fiscal standpoint, this change would be neutral. But overtime, as pressures  
to expand the system grew,a government might have a clear mechanism to limit
public subsidies only the best students.The government might wish to differentiate the
value given on the basis of the course of study taken; those who qualified for medical
training,for example,might receive more than those who qualified for socials sciences.
And  the government might also want to impose restrictions on the number of years
for which the voucher is available for use,in order to promote efficient student flows.)

Following option government May consider to:


 Limiting number of voucher-financed students, while some pay full fee
 Moving toward loans than grant
 Eroding the value of grant by inflation, while increasing number of grants given
Institutional budgets would remain in line wd cost, so long as the institution had control in admissions
and tuition policies.

2- Competition at institutional level:- promoting competition among institutions for students.


Institutions are rely on fee income while they receive capital expenditure support from government.
Students compete for receive support by meeting relatively strict academic requirements.

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