Chapman, Bruce and Doris, Aedin (2019) Modelling higher education financing reform for Ireland. Economics of Education Review, 71. pp. 109-119. ISSN 0272-7757

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Abstract

This paper examines the feasibility of various alternative student loan schemes for Ireland. Using data from a large employer survey, we model the life-cycle earnings distribution for Irish graduates. We then use these estimates to simulate the effects of alternative types of student loans, including mortgage-type loans and incomecontingent loans of various designs, incorporating participation and migration patterns into the simulations. The results show that mortgage-type loans entail unsustainably high repayment rates for low income graduates. Through the specification of several alternative income-contingent loan schemes, it is demonstrated that this approach to higher education financing is feasible both in terms of affordability for graduates and with respect to implied government subsidies. There are some important policy design issues to be addressed and we conclude with some recommendations for a future Irish schem

Item Type:	Article
Keywords:	Educational finance, Financial Aid; Government Policy; Government Expenditures and Education; Governmental Loans, Loan Guarantees, Credits, Grants, Bailouts; Higher education finance; Ireland; Student loans; Income-contingent loans;
Academic Unit:	Faculty of Social Sciences > Economics, Finance and Accounting
Item ID:	11362
Identification Number:	https://doi.org/10.1016/j.econedurev.2018.06.002
Depositing User:	Aedin Doris
Date Deposited:	18 Oct 2019 09:22
Journal or Publication Title:	Economics of Education Review
Publisher:	Elsevier
Refereed:	Yes
URI:	Publisher
Use Licence:	This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

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