Student Loan Reform, Interest Subsidies and Costly Technicalities: Lessons from the UK Experience

Autor/inn/en	Johnston, Alison; Barr, Nicholas
Titel	Student Loan Reform, Interest Subsidies and Costly Technicalities: Lessons from the UK Experience
Quelle	In: Journal of Higher Education Policy and Management, 35 (2013) 2, S.167-178 (12 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	1360-080X
DOI	10.1080/1360080X.2013.775925
Schlagwörter	Foreign Countries; Student Financial Aid; Paying for College; Loan Repayment; Income; Costs; Salaries; College Graduates; Educational Policy; Grants; Educational Change; Markov Processes; Credit (Finance); Finance Reform; United Kingdom + Suchen Sie Ihr Suchwort? Ausland; Finanzielle Beihilfe; Studienfinanzierung; Studienförderung; Einkommen; Cost; Kosten; Entlohnung; Gehalt; Hochschulabsolvent; Hochschulabsolventin; Politics of education; Bildungspolitik; Grant; Bildungsreform; Markowscher Prozess; Credit; Kredit; Financial reform; Finanzreform; Großbritannien
Abstract	In this paper, we consider lessons for other countries about the design of student loans with income-contingent repayments (i.e. repayments calculated as "x" per cent of each borrower's subsequent income). Using a dataset of 20,000 simulated lifetime graduate earnings paths, we estimate the cost and distributional effects of reforms in England in 2012. Introducing a real interest rate produces significant savings, mostly from graduates in the middle and upper earnings deciles. But those gains are offset by an increase in the income threshold at which loan repayments start. We conclude with discussion of policy changes to offset the increased cost of student loans (roughly 4,400 British pounds per graduate) within the current austerity climate, namely significant reductions in the higher education block teaching grant and a cap on the number of students. (Contains 1 table and 5 figures.) (As Provided).
Anmerkungen	Routledge. Available from: Taylor & Francis, Ltd. 325 Chestnut Street Suite 800, Philadelphia, PA 19106. Tel: 800-354-1420; Fax: 215-625-2940; Web site: http://www.tandf.co.uk/journals
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10