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The finance of higher education faces a clash between technological advance, driving up the demand for skills, and fiscal constraints, given competing imperatives for public spending. Paying for universities is also immensely politically sensitive. This paper sets out core lessons for financing higher education deriving from economic theory, including the desirability of loans with income-contingent repayments. Subsequent discussion includes a general strategy for OECD countries derived from the theoretical analysis, and reforms in England in 2006 which illustrate the strategy. The paper concludes with discussion of the appropriate role of government in higher education. [ABSTRACT FROM AUTHOR]

The use of appropriate indicators of public and private expenditures, from which statistically significant differences in funding policies can be identified, constitutes a solid foundation in which the assessment of the role of governments in promoting higher education can be grounded. Based on a carefully selected set of Organization for Economic Co-operation and Development indicators, this paper explores the effects of education funding policies, along with research and development expenditures and tax levels, on the entry rate to higher education. The results from the statistical analysis of the data confirm the existence of two distinct approaches to higher education funding, the Scandinavian approach and Anglo-American approach, and help to define their characteristics. [ABSTRACT FROM AUTHOR]

In recent times there has been considerable change and instability with respect to Thailand student loans policy. The contribution of what follows is to compare and contrast the consequences of disparate possible approaches to the payment of tuition in two main respects: the effect on internal rates of return for higher education investments; and the implications of different approaches for the time stream, and thus the present value, of tuition payments to the government. The authors find that, in general, income contingent loans are preferred to the current scheme, although this would not be the case if such a policy reform is poorly designed. [ABSTRACT FROM AUTHOR]