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. 

Downloads

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

No. 93: Spring 2018

Section

Loans and Debt: Policies and Consequences

License

Copyright (c) 2018 International Higher Education

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Authors who publish with this journal agree to the following terms:

    1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
    2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
    3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
    4. Authors will be required to sign our standard License Ageement before publication.

A Word document containing the License Agreement is available for download here.