Five, global third-level education funding models

With the government looking else where for a template for possible policy change, we take a look at five different systems from around the world.

Nordic Model

• High levels of state funding, with no student contribution.

• Grants and loans provided for student living expenses.

Dutch Model

• High levels of state funding with moderate levels of student contribution (around, €2,000)

• Targeted support for students from families with incomes below €46,000

• Involves an income contingent loan for tuition and living expenses.

• Repayment terms are adjusted for income levels over a 35-year period (with favourable interest rates).

Australian Model

• Moderate levels of state funding, student contribution averages €4,000-€7,000

• Maintenance grants are readily available to students from low income families

• Income contingent loan applies to tuition only

• Repayments of 0-8% monthly begin when an individual’s income reaches that of €36,000

• Despite the fact that roughly 85% of loans are unpaid (due to students emigrating or not reaching income levels) it has proven itself to be a relatively sustainable funding model.

English Model

• Very low state funding with high student fees (upwards of €12,000).

• Income contingent loan for full-time undergraduates

• Maintenance loans are available for students.

• Graduates with low income unlikely to pay back loans with about 73% have partial debt written off.

• Increased income has enhanced quality of third-level institutions.

• Many loans remain unpaid and there remains uncertainty about how much the government will recoup.

US Model

• Very low state funding.

• Very high student contribution.

• "Mortgage-type" student loans and grants for low income students.

• On average, students leave college with debts surmounting €20,000.

• This could be disincentivizing to students considering third-level education.