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Trends in financing higher education: tuition fees and loans

Trends in financing higher education: tuition fees and loans . Karina Ufert European Students ’ Union (ESU) Financing Higher Education: In search of effective solutions 28 th June 2013, Warsaw (PL). 30 years of ESU:. From an informal gathering of 7 unions with no budget and no mandate…

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Trends in financing higher education: tuition fees and loans

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  1. Trends in financing higher education: tuition fees and loans Karina Ufert European Students’ Union (ESU) Financing Higher Education: In search of effective solutions 28th June 2013, Warsaw (PL)

  2. 30 years of ESU: • From an informal gathering of 7 unions with no budget and no mandate… • … to a strong union defending students’ rights, with 10 elected representatives, 7 secretariat members and 47 memberunions from 38 countries… • … with a fixed seat around the table in • all Bologna-gatherings and EU • stakeholder meetings

  3. Dan, 25 years old, England

  4. ESU believes, that • Higher education is a public good and public responsibility • Massification is not an excuse to fund less – it is about equipping societies to cope with contemporary demands – matter of priority • Benefits of better education are both for individuals and society as a whole – equal societies do better! See examples of Finland, Sweden, Malta… • Active labor market policies have a long-term impact - education is a strategic investment area

  5. It is all about widening the access • EU2020 target on 40% tertiary attainment level • National access plans (EHEA) • “Rise of the lifelong learning” But, In times of crisis the commitments are barely backed by the budget allocations

  6. Public expenditure on Higher education, 2010 OECD

  7. Impact of economic crisis: • Cuts on teaching (almost half, OECD) • Cuts on students’ support and facilities (Spain, Portugal) • Outsourcing student support (loans) to private intermediaries (UK, Lithuania, Ireland) • Greater focus on the outcomes (employability discourse) • Introducing/ raising tuition fees (UK, Slovenia) – drop in entrants with lower socio-economic background

  8. Funding system, based on loans: just another bubble • Little hardcore evidence in continental Europe, but sufficiently outside (US, Canada, Chile, UK) • But what we know is enough to draw some general conclusions;

  9. Great misconceptions about the loans • Loans aren’t a tool to enhance social mobility (don’t forget the cultural barrier) • Potential cost of the loan is underestimated – count in all the – lower salary, longer repayment period, higher total amount • Imbalance in the system: should we all go to study MBAs? What about social work?

  10. Overcoming 50% youth unemployment while providing loans? • Full-income contingent loans can exist, as an option • But the policy-making in financing higher education should reflect the reality • Stronger lobby from education community for an appropriate public spending • Investing more in quality accessible education. Without being accessible, even high quality education is worthless for the society.

  11. Thank you! Karina Ufert Chairperson ESU Karina.ufert@esu-online.org +32 473 669892

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