IDEAS home Printed from https://ideas.repec.org/a/eee/ecoedu/v37y2013icp298-308.html
   My bibliography  Save this article

Repayment burdens of student loans for Vietnamese higher education

Author

Listed:
  • Chapman, Bruce
  • Liu, Amy Y.C.

Abstract

Expansion of high education in Vietnam will be undermined without an effective student, loans policy to assist with tuition and living costs. We show the significance of this issue is by, constructing a hypothetical loans system and calculating repayment burdens (RBs) (the proportion of, a graduate's income required to repay the debt) for male and female in four different parts of Vietnam, and with respect to two levels of loans. Importantly, the exercises examine RBs across the whole, distribution of income using unconditional quantile techniques. We find that RBs involving loans for, tuition only are likely to lead to significant RBs for poor graduates, with much higher loans being, associated with critical financial difficulties for perhaps the majority of debtors. This will result in high, default rates and consumption difficulties for borrowers, implying strongly that a student loan system, with such high RBs is unlikely to be successful in Vietnam.

Suggested Citation

  • Chapman, Bruce & Liu, Amy Y.C., 2013. "Repayment burdens of student loans for Vietnamese higher education," Economics of Education Review, Elsevier, vol. 37(C), pages 298-308.
  • Handle: RePEc:eee:ecoedu:v:37:y:2013:i:c:p:298-308
    DOI: 10.1016/j.econedurev.2013.06.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0272775713000903
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Barr, Nicholas, 2003. "Financing higher education: lessons from the UK debate," LSE Research Online Documents on Economics 287, London School of Economics and Political Science, LSE Library.
    2. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
    3. Schwartz, S. & Finnie, R., 2002. "Student loans in Canada: an analysis of borrowing and repayment," Economics of Education Review, Elsevier, vol. 21(5), pages 497-512, October.
    4. Dynarski, Mark, 1994. "Who defaults on student loans? Findings from the National Postsecondary Student Aid Study," Economics of Education Review, Elsevier, vol. 13(1), pages 55-68, March.
    5. 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.
    6. Chapman, Bruce & Lounkaew, Kiatanantha, 2010. "Income contingent student loans for Thailand: Alternatives compared," Economics of Education Review, Elsevier, vol. 29(5), pages 695-709, October.
    7. 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.
    8. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    9. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Higgins, Tim & Sinning, Mathias, 2013. "Modeling income dynamics for public policy design: An application to income contingent student loans," Economics of Education Review, Elsevier, vol. 37(C), pages 273-285.
    2. Aedin Doris & Bruce Chapman, 2016. "Modelling Higher Education Financing Reform for Ireland," Economics, Finance and Accounting Department Working Paper Series n271-16.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
    3. Chapman, Bruce & Lounkaew, Kiatanantha, 2013. "Introduction to the special issue on Economic Research for Education Policy," Economics of Education Review, Elsevier, vol. 37(C), pages 200-203.
    4. Heitor, Manuel & Horta, Hugo & Leocádio, Miguel, 2016. "Enlarging the social basis of higher education: Lessons learned from extending a social support system with a risk-sharing loan scheme in Portugal," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 319-327.

    More about this item

    Keywords

    Student loans; Repayment burden; Government aid; Vietnam;

    JEL classification:

    • I00 - Health, Education, and Welfare - - General - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:37:y:2013:i:c:p:298-308. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/econedurev .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.