Income-Contingent Loans: Not a Miracle Solution

Authors

  • Ariane de Gayardon

DOI:

https://doi.org/10.6017/ihe.0.93.10430

Keywords:

Income-contingent loan, higher education financing, Australia, England, New Zealand

Abstract

With the rising costs of higher education, an increasing share of which is borne by students and their families, governments have had to design student loans schemes to open higher education to all. A popular option among economists is income-contingent loans, where repayment is calculated as a share of the borrower’s income to avoid high repayment burden. However, the three flagship countries for
income-contingent loans—Australia, England, and New Zealand—are all currently experiencing financing issues. This raises the question of defining the correct specification of income-contingent loans schemes, as well as finding the proper balance between different financial aid policies.

Author Biography

Ariane de Gayardon

Ariane de Gayardon is researcher at the Institute of Education Centre
for Global Higher Education, University College London, UK. 

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Published

2018-03-29

How to Cite

de Gayardon, A. (2018). Income-Contingent Loans: Not a Miracle Solution. International Higher Education, 2(93), 18–19. https://doi.org/10.6017/ihe.0.93.10430

Issue

Section

Loans and Debt: Policies and Consequences