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Student Loan Reforms for German Higher Education: Financing Tuition Fees

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  • Chapman, Bruce

    ()
    (Australian National University)

  • Sinning, Mathias

    ()
    (University of Queensland)

Abstract

It is generally agreed that the funding base for German universities is inadequate and perhaps the time has come for serious consideration of the imposition of non-trivial tuition charges. Against this background, this paper compares conventional and income contingent loans for financing tuition fees at German universities. With the use of unconditional age-income quantile regression approaches our analysis considers two critical aspects of the loan debate: the size of repayment burdens associated with normal mortgage-style loans, and the time structure of revenue to the government from a hypothetical income contingent loan scheme. It is found tuition fees at German universities could increase considerably with the use of an income contingent loan system based on current policy approaches used in Australia, England and New Zealand.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5532.

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Length: 34 pages
Date of creation: Feb 2011
Date of revision:
Publication status: published in: Education Economics, 2012, [Online First]
Handle: RePEc:iza:izadps:dp5532

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Related research

Keywords: student financial aid; state and federal aid; government expenditures on education; educational finance;

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References

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  1. Rothstein, Jesse & Rouse, Cecilia Elena, 2011. "Constrained after college: Student loans and early-career occupational choices," Journal of Public Economics, Elsevier, vol. 95(1), pages 149-163.
  2. Carneiro, Pedro & Heckman, James J., 2002. "The Evidence on Credit Constraints in Post-Secondary Schooling," IZA Discussion Papers 518, Institute for the Study of Labor (IZA).
  3. Bruce Chapman & Kiatanantha Lounkaewa, 2010. "Repayment Burdens with US College Loans," CEPR Discussion Papers 647, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  4. Bruce Chapman & Kiatanantha Lounkaew, 2009. "Income Contingent Student Loans for Thailand: Alternatives Compared," CEPR Discussion Papers 595, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  5. SErgio Firpo & Nicole M. Fortin & Thomas Lemieux, 2006. "Unconditional Quantile Regressions," Textos para discussão 533, Department of Economics PUC-Rio (Brazil).
  6. Chapman, Bruce & Lounkaew, Kiatanantha & Polsiri, Piruna & Sarachitti, Rangsit & Sitthipongpanich, Thitima, 2010. "Thailand's Student Loans Fund: Interest rate subsidies and repayment burdens," Economics of Education Review, Elsevier, vol. 29(5), pages 685-694, October.
  7. Bruce Chapman & Andrew Leigh, 2006. "Do Very High Tax Rates Induce Bunching? Implications for the Design of Income-Contingent Loan Schemes," CEPR Discussion Papers 521, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  8. Chapman, B., 1996. "Conceptual Issues and the Australian Experience with Income Contingent Charges for Higher Education," CEPR Discussion Papers 350, Centre for Economic Policy Research, Research School of Economics, Australian National University.
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Cited by:
  1. Björn Alecke & Claudia Burgard & Timo Mitze, 2013. "The Effect of Tuition Fees on Student Enrollment and Location Choice – Interregional Migration, Border Effects and Gender Differences," Ruhr Economic Papers 0404, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Schwager, Robert, 2012. "Student loans in a tiebout model of higher education," Center for European, Governance and Economic Development Research Discussion Papers 137, University of Goettingen, Department of Economics.
  3. repec:got:cegedp:137 is not listed on IDEAS

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