IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Student Loan Reforms for German Higher Education: Financing Tuition Fees

  • Bruce Chapman
  • Mathias Sinning

Due to the unknown future economic situation of students, private banks are unwilling to provide student loans in the absence of collateral. This market failure requires government intervention to prevent socially sub-optimal and regressive outcomes. Income contingent loans, whose repayment depends on the borrowers' future capacity to pay, can offer a possible solution to this problem. In this paper, we compare alternative income contingent loans for financing tuition fees at German universities. Several German states have introduced tuition fees at their universities since summer 2007 and publicly owned banks have started to offer student loans to cover these fees. Our empirical findings highlight the benefits of income contingent loans and demonstrate that tuition fees at German universities could increase considerably if an income contingent loan system would be implemented to provide students with the financial resources they need to pay these fees.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://www.cbe.anu.edu.au/researchpapers/cepr/DP646.pdf
Our checks indicate that this address may not be valid because: 500 Can't connect to www.cbe.anu.edu.au:443. If this is indeed the case, please notify ()


Download Restriction: no

Paper provided by Centre for Economic Policy Research, Research School of Economics, Australian National University in its series CEPR Discussion Papers with number 646.

as
in new window

Length:
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:auu:dpaper:646
Contact details of provider: Postal: +61 2 6125 3807
Phone: +61 2 6125 3807
Fax: +61 2 6125 0744
Web page: http://rse.anu.edu.au/cepr.php
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Chapman, Bruce, 1997. "Conceptual Issues and the Australian Experience with Income Contingent Charges for Higher Education," Economic Journal, Royal Economic Society, vol. 107(442), pages 738-51, May.
  2. Bruce Chapman & Andrew Leigh, 2009. "Do Very High Tax Rates Induce Bunching? Implications for the Design of Income Contingent Loan Schemes," The Economic Record, The Economic Society of Australia, vol. 85(270), pages 276-289, 09.
  3. 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.
  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. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post-Secondary Schooling," NBER Working Papers 9055, National Bureau of Economic Research, Inc.
  6. SErgio Firpo & Nicole M. Fortin & Thomas Lemieux, 2006. "Unconditional Quantile Regressions," Textos para discussão 533, Department of Economics PUC-Rio (Brazil).
  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. 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.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:auu:dpaper:646. 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: ()

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.