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Annotated Bibliography

Author(s):Hahn, R.
Title:The global state of higher education and the rise of private finance
Organization:Institute for Higher Education Policy
Short Description:This article examines the benefits and costs of governments taking responsibility of financing higher education.
Annotation:Currently, most governments around the world take primary responsibility for the financing of higher education. The numerous public benefits of higher education continue to justify substantial government support, despite competing priorities such as health care, primary and secondary education, and infrastructure. However, a combination of increased per unit costs and higher enrollments has driven up costs, straining government resources to their limit. Consequently, the private sector—represented by households, businesses, and philanthropists—has taken on even greater responsibility for the costs of higher education. This cost-sharing with the private sector takes a number of forms, including tuition1 paid by students and parents, fees and royalties earned through university-industry collaboration and donations from alumni and other philanthropists. The increasing reliance on private finance to cover the costs of higher education has stimulated a parallel trend. To manage this increased cost-sharing, private finance increasingly serves as a conduit for investment in higher education through bond issuances, securitizations, private and public-private student loan programs, and other means. Increased cost-sharing and greater private investment have helped reduce the strain on government resources and maximize the resources available to higher education.
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Associated Keywords:
Affordability, Tuition and College Costs
Borrowing/Student Debt
College Access
Educational Attainment/College Degree Completion
Financial Aid
International Perspectives
Social and Economic Benefits/Economic Development

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