Petr Wawrosz Herbert Heissler University of Finance and
Petr Wawrosz Herbert Heissler University of Finance and Administration Prague, Czech Republic
� 1993: 123 thousands � 2011: 357 thousands � Impossible trinity: larger quantity, higher quality and moderate public spending
� Decline importance of other factors: - raw materials - capitals tocks - technology � Human capital - private and public returns � Education for citisenships versus vocational training
� Private benefits are realized ex post � Owner of HC cannot give satisfied guarantee � How to overcome liquidity constraint : postpone payment to the period when borrower earn enough money � Possible ways: - Human Capital Contract - Graduate tax - Income Contingent Loan
�= a voluntary private contract between a student and an investor in which a student commits part of his future earnings to an investor for a fixed period of time in exchange for capital for financing education � Main parameters: - percentage of income and the repayment period � Disadvantages: - hidden income - adverse selection - willingness investors to invest money for lung run (bad example: MRU)
� State lend money to student (can give directly money to university) � Student return money in form of graduate tax
� Australia (HECS, HELP) � Great Britain � Government Participation
� What is necessary to explain (clearly stipulate): - The place of the student loan scheme or schemes in the total array of policy elements making up the complex sharing of higher educational cost. - The aim of the loan scheme. - The degree of subsidization (how much government subsidizes the loan). - The method of rationing or targeting (who recieves loans). - Default risk. - The manageability of repayments. - Method of disbursement.
- Slides: 8