„Financial Barriers in Higher Education“ - EURASHE · 2019-12-23 · Dorit Griga „Financial barriers in higher education“ 3 1.1 Explaining financial barriers in HE: Micro-level

„Financial Barriers in Higher Education“

Dorit Griga, M.A.

EURASHE 20th Anniversary Annual ConferenceTallinn, 15th October 2010

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2Dorit Griga „Financial barriers in higher education“

Structure

1. Explaining financial barriers in HE1.1 Micro‐level approaches1.2 Factors on the meso‐ or macro‐level

2. Financial costs to HE2.1 Tuition fees2.2 Grants and loans

3. Financial benefits from HE4. Financial barriers in HE completion5. Summary and conclusions


1.1 Explaining financial barriers in HE: Micro-level approaches

Rational choice theoryU = E(B) – C Educational decisions as an outcome of individualconsiderations of costs, benefits and the probabilitiesto successfully pass specific educational tracks.

Assumption

Financial barriers in HE vary between the social groups(e.g. socioeconomic background, gender).


1.2 Explaining financial barriers in HE: Factors on the meso- or macro-level

U = E(B) – C

+

‐ High drop out rates

High premium in respect to wage and job opportunities

Tuition fees

Economy


Reasons for German school leavers not to enroll into HE (2008)*

69

71

76

0 20 40 60 80 100

Tuition fees exceedfinancial capabilities

Want to avoid debts

Lack of financial means

Per cent

2. Financial costs to HE I

Source: Heine, Quast, Beuße 2010* Share of persons who respondet that this aspect has influenced theirdecision to a (very) large extent

N=1,312


Reasons for German school leavers not to enroll into HE by educational background (2008)*

73

74

79

62

67

71

0 10 20 30 40 50 60 70 80 90 100


Want to avoid debts

Lack of financial means

Per centLow High

Source: Heine, Quast, Beuße 2010* Share of persons who respondet that this aspect has influenced theirdecision to a (very) large extent

N=1,312

2. Financial costs to HE II


Reasons for German school leavers not to enroll into HE by gender (2008)*

63

66

73

72

74

77

0 20 40 60 80 100


Want to avoid debts

Lack of financialmeans

Per centMen Women

2. Financial costs to HE III

* Share of persons who respondet that this aspect has influenced theirdecision to a (very) large extent

N=1,312

Source: Heine, Quast, Beuße 2010


2.1 Financial costs to HE: Tuition fees I

Source: Eurydice (2008)No tuition fees Tuition fees exist Dependent on federal states


0

50

100

150

200

250

300

BG E/W EE PT LV TR IE NL ES LT CH CZ RO SK SI FR AT*DE

* FISC

O SE

Euros per m

onth

Real price (nominal) Price by purchase parity

Monthly contribution to institutions of higher educationin nominal and comparative prices

Source: Eurostudent (2008), AT: own amendment, DE: varies between federal states

2.1 Financial costs to HE: Tuition fees II


2.1 Financial costs to HE: Tuition fees III

Tuition policies Examples Effects on HE participation

1Tuition fees(generell effect)

All countrieswhere fees arecharged

General low price‐responsivenessof students, but: high sensitivity of low‐SES students

2

3

4

5

Differences in HE prices by institution, subject or programme

AU, CA, UK, US, ..

Overrepresentation of low‐SESstudents in cheaper HE opportunities

Up‐front tuition vs. deferred tuition fees

AU, DE, UKDepending on means‐testing and income‐contingend repayment

Dual‐track tuitionpolicies

EE, HU, LT, PL, RO, ..

Tend to increase inequality in HE due to „merit‐based“ selection

Tuition fees for part‐time students only

HU, PL, SR, Negative impact on non‐traditionalstudents


2.2 Financial costs to HE: Grants and loans I

Effects on HE participation

Grants Loans

• Increased likelihood of enrolment of students

• More readily taken up by middle‐ and high‐SES students than by low‐SESstudents.

• Debt aversion especially of lower‐SESstudents and female students

• Stronger impact on studentsfrom low‐income families and students from ethnic minorities

• Nonetheless: increased borrowing fromparents and private banks in recent years


Share of total public expenditure on HE spent as direct financial aid to students (2005)

58

43

31 28 272624 24 2322 21 19 17 17 1717 1615 15

1412 11 9 9 8 8 8 6 64 2 1 1

0

10

20

30

40

50

60

70

CY NO DK NL SE UK SI US IS JPEU

27 DE LV IT AT FI HU BE IE SKBo

logna BG LT PT EE ES FR TR RO CR CH EL PL

Per cent

Grants Loans

Source: Eurostat

2.2 Financial costs to HE: Grants and loans II


100

120

140

160

180

200

220

HU CZ SK US PT DE AT LU IE FR JP PL UK FI

OECD

avg. CH TR BE IT NL ES SE NO DK EE SI

Per cent

Tertiary‐type A and advanced research programmes All tertiary education

3. Financial benefits from HE IRelative Earnings from employment

(2008 or latest available year)

By level of educational attainment and gender for 25‐64‐year‐olds (upper secondary and post‐secondary non‐tertiary education = 100)

Source: OECD (2010)


3. Financial benefits from HE II

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

High Medium Low

medianP25P75

Eurostat/Eurostudent (2009)

Annual gross income of workers in the EU‐27 by educational attainment — 2006

PPS EUR


Completion rates (%), ISCED 5A (at least first 5A programme) ‐ 2005*

9187 86

83 81 80 79 79 77 76 74 73 73 73 72 71 71 70 70 69 68 67 67 66 64 64 6357 56

45

0

10

20

30

40

50

60

70

80

90

100

JPMT CY IE DK BG EL UK DE BE ES LT PT TR FI NL AT SK CH SE CZ EE NO IS FR SI PL HU US IT

Per cent

4. Financial barriers in HE completion I

Source: OECD* EL, ES, CY, LT, MT, TR: 2004 data


4. Financial barriers in HE completion II

Source: Heublein, Hutzsch, Schreiber, Sommer, Besuch (2010)

N=2,500

Reasons for German HE drop‐out (2008)*

4

7

10

11

12

18

19

20

0 5 10 15 20 25

Disease

Family‐related problems

Changed professional orientation

Examination failure

Problematic study conditions

Motivational problems

Financial problems

Problems to meet academicrequirements

Percent


5. Summary

(z‐Transfor‐mation)

Monthlycontributions to

HEI

Share of publicexpenditure on HE spent as directstudent support

Completion rates Sum

1 NO 1,08 2,07 ‐0,49 2,67

2 DE 1,08 0,15 0,54 1,78

3 SE 1,08 0,80 ‐0,28 1,60

4 FI 1,08 ‐0,06 0,03 1,05

5 IS 1,08 0,47 ‐0,59 0,96

6 IE ‐0,56 ‐0,21 1,16 0,40

7 SI 0,63 0,52 ‐0,80 0,36

8 NL ‐0,56 0,86 ‐0,08 0,23

9 AT 0,19 ‐0,04 ‐0,08 0,07

10 SK 0,49 ‐0,30 ‐0,18 0,01


5. Conclusions I

1. General availability and sufficiency of need‐based or means‐tested grants (or loans)

• General availability: students interested in and admissible to HE are entitled to grants because of theirfamily‘s low income

• Sufficieny: amount can covers all direct costs to HE including costs of student living

2. If grants are supplemented by loans• State intervention to secure a maximum interest rate

necessary

• Repayment‐obligations should be related to the income


5. Conclusions II

3. Standards at HEI as well as an academic curriculum thatallows and even encourages both part‐time jobs and part‐time study

4. Reconsider dual‐track schemes and tuition fees for part‐time students

5. Introduction of grants and scholarships targeting to womenin oder to compensate for their increased debt aversion and cost‐responsiveness.


Literature

• Eurostat/Eurostudent (2009): The Bologna Process in Higher Education in Europe Key indicators on the social dimension and mobility, http://epp.eurostat.ec. europa.eu/cache/ITY_OFFPUB/KS‐78‐09‐653/EN/KS‐78‐09‐653‐EN.PDF

• Eurostudent (2008): Social and Economic Conditions of Student Life in Europe, Bielefeld• Eurydice (2008): Social and Economic Conditions of Student Life in Europe, Brussels.• Heine/Quast/Beuße (2010): „Studienberechtigte ein halbes Jahr nach Schulabschluss“, HIS:

Forum Hochschule (3).• Heublein, Hutzsch, Schreiber, Sommer, Besuch (2010): „Ursachen des Studienabbruchs in

Bachelor‐ und in herkömmlichen Studiengängen, Ergebnisse einer bundesweiten Befragung von Exmatrikulierten des Studienjahres 2007/08“, in HIS: Forum Hochschule (2).

• Marcucci/Johnstone(2007): „Tuition Policies in a Comparative Perspective: Theoretical and Political Rationales“, Journal of Higher Education Policy and Management, 29(1): 25‐40.

• OECD (2010): Education at a Glance, Paris.• Vossensteyn, J.J. (2005), Perceptions of student price‐responsiveness, A behavioural

economics exploration of the relationships between socio‐economic status, perceptions of financial incentives and student choice, Enschede.

Thank You!Questions?


133

93 88

59 57 56

4029 28

11 10 7 6 6 1

‐51‐44

‐35

‐19‐24

‐37

‐19

‐50

‐36

169

‐40

14

‐20 ‐6‐12‐5‐9

‐100

‐50

0

50

100

150

BG IE CH CZ DE AT FR PT ES RO NL SCO SE TR FI SI EE

Per cent

Low educational background High educational background

2.2 Financial costs to HE: Grants and loansIII

Deviation from state support for average student according to the educational level of students' fathers (2006)*

* Students living away from the parental home, ISCED 5A Source: Eurostat/Eurostudent (2009)

Documents

„Financial Barriers in Higher Education“ - EURASHE · 2019-12-23 · Dorit Griga „Financial barriers in higher education“ 3 1.1 Explaining financial barriers in HE: Micro-level