A report by the OECD highlights how much its
member states vary in their policies towards higher education
financing. Especially "in countries with more progressive tax
structures, such as Denmark, Finland, Iceland, Norway and Sweden,
students pay low or no tuition fees and have access to generous
public subsidies for higher education, but face high income tax
rates. By contrast, tuition fees can be much higher in Australia,
Canada, New Zealand, the Netherlands and the United States, though
students in these countries also have access to significant
financial support."
Average tuition fees in $
(y-axis)
vs. % of students receiving subsidies (x-axis)
Taking into higher education participation in the respective
countries, the OECD suggests that "student financial support
systems that provide both loans with income-contingent
repayments and means-tested
grants not only promote access and equity at
the front end of higher education, but also lead to better outcomes
for students at the back end."
"Charging a moderate level of tuition fees - while
simultaneously giving students opportunities to benefit from
comprehensive financial aid systems - is an effective way for
countries to increase access to higher education, make efficient
use of limited public funds, and acknowledge the significant
private returns that students receive from higher education."
"While what constitutes 'moderate' is not easy to define, OECD
countries that charge for higher education most commonly have
average annual tuition fees ranging from $800 to $1,300 per year
for full-time national students enrolled in university-level
programmes."
Tying tuition fees to skills shortage
Next to student loans and grants, a number of different
approaches have become increasingly popular. "Some countries with
highly subsidised higher education systems, such as Denmark and
Sweden, increased tuition fees for non-European Union students in
recent years, joining a long list of countries that charge higher
rates for international students."
"At least 14 OECD member and partner countries differentiate
tuition fees among fields of study to account for the higher cost
of operating some academic programmes. Australia has even attempted
to link the level of fees to labour-market opportunities by
lowering tuition fees for fields with skills shortages, in order to
attract more students."