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Category: Student Aid

The Canadian Way of Higher Education Subsidies

One of the biggest arguments in student assistance is about who to subsidize and why.  Unfortunately, because we are rarely explicit in the way we talk about subsidies, discussions tend to be a dialogue of the deaf. One school of thought says we should subsidize students based on their parental income.  Students from poor families need more help to succeed than students from wealthier families, and so the former should pay less, and so we should pay them grants to

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March 19, 2014 2 Comments

How ICRs can Become Graduate Taxes: The Case of England

As noted yesterday, graduate taxes and income-contingent loans have many similar features.  They both defer payments until after graduation, and they are usually payable as a percentage of marginal income above a given threshold.  In England right now, the payment scheme on ICR loans is that students pay 9% of whatever income they earn over £21,000 (roughly C$38,000).  The difference between the two is that with a loan you have a set amount to pay, and when it’s paid you’re

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March 18, 2014 2 Comments

Oregon’s “Pay It Forward” Scheme and the ICR vs. Graduate Tax Problem

You may have heard some rumblings from south of the border over the past few months with respect to a program called Pay It Forward (PIF).  The brainchild of a student group called Students for Educational Debt Reform, this idea was picked up by the Oregon assembly last summer; within a few months, over a dozen state governments were examining similar draft legislation. The basics of the program are these: instead of paying tuition, students agree to pay a percentage

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March 17, 2014 1 Comment

New Student Debt Numbers

So, the more stat-minded among you may have noted the release, this past Tuesday, of Statistics Canada’s 2012 Survey of Financial Security (SFS).  Though the main talking points were largely about mortgage debt, it also contained some interesting statistics on student debt. Now, remember that these are figures on outstanding student debt.  Some of it will be in repayment (i.e. held by graduates now in the labour force), and some of it will not (i.e. held by current students).  The way to

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February 27, 2014 No Comments

Why Can’t We Just Means-Test Tuition?

A couple of weeks ago, I had an exchange with a colleague who couldn’t figure out why tuition wasn’t means-tested.  It just makes sense, he said: make the rich kids pay lots of tuition, and make the poor kids pay very little. I argued that it was means-tested.  If you didn’t have means, you’d get a grant, which would reduce tuition (though I allowed that this was done a lot less effectively than it could be, given how poor our

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February 20, 2014 2 Comments
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One Thought to Start Your Day is our founder and CEO Alex Usher’s popular daily blog, brimming with up-to-the-minute insights and informed opinions on today’s higher education industry.

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