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Income contingent university loans: policy design and an application to Spain

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Listed:
  • Antonio Cabrales
  • Maia Güell
  • Rocio Madera
  • Analía Viola

Abstract

In Europe, the need for additional funding coming from either budget cuts and/or increased costs due to increased competition has reopened the debate on the financing of university systems. An attractive alternative to the current general-tax financed subsidies are Income Contingent Loans (ICL), a flexible scheme that puts more weight on private resources while enhancing progressivity. One challenge of the viability of ICL systems is the functioning of the labor market for university graduates. This paper offers a general analysis of the economics of ICL, followed by an application to Spain.

Suggested Citation

  • Antonio Cabrales & Maia Güell & Rocio Madera & Analía Viola, 2018. "Income contingent university loans: policy design and an application to Spain," Policy Papers 2018-06, FEDEA.
    • Handle: RePEc:fda:fdapop:2018-06
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    References listed on IDEAS

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    1. Azmat, Ghazala & Simion, Stefania, 2017. "Higher Education Funding Reforms: A Comprehensive Analysis of Educational and Labor Market Outcomes in England," CEPR Discussion Papers 12389, C.E.P.R. Discussion Papers.
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    7. Francisco José Collado Muñoz & Elena del Rey Canteli & Natalia Utrero González, 2017. "Estimating taxpayer subsidies and individual repayment burdens of a student loan program in Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 220(1), pages 89-106, March.
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    Cited by:

    1. Ghazala Azmat & Ştefania Simion, 2021. "Charging for Higher Education: Estimating the Impact on Inequality and Student Outcomes," Post-Print hal-03873819, HAL.
    2. Azmat Ghazala & Simion Ştefania, 2021. "Charging for Higher Education: Estimating the Impact on Inequality and Student Outcomes," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(1), pages 175-239, January.
    3. Ghazala Azmat & Ştefania Simion, 2021. "Charging for Higher Education: Estimating the Impact on Inequality and Student Outcomes," SciencePo Working papers Main hal-03873819, HAL.

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    More about this item

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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