An Aussie fix for higher education
Israel could look down under to address issues of higher education
Some 250,000 university students returned to campus this week. For many, tuition and living costs present a choking burden. About a quarter can't manage, and drop out.
The huge influx of students to universities and colleges is testimony to the fact that many people feel higher education is a good investment. And so it is: The average salary for a university graduate is significantly higher than non-graduates.
From a social point of view the issue is complex: People with low incomes don't invest very much in their children's education, and so the education gap, which perpetuates the gap between rich and poor, which in turn perpetuates the education gap, continues to grow.
In theory, it would be possible to end this vicious cycle by providing free education, as do some countries in Europe. Those who support this proposition say higher education is a right that should be available to all.
Opponents of this idea argue that food, too, is an inalienable right, but no one proposes distributing food to the entire population.
And others claim it is simply unjust to use public money to finance higher education, because non-students are forced to pay for something they do not use.
Either way, higher education is an expensive commodity in most developed countries, and even countries that don't currently charge tuition are considering changing course.
The principle reasons for this are rising teaching and scientific research costs, and proof that heavy subsidies for higher education bring down their levels and make them less efficient.
In this area, too, the free market reigns: It is good to encourage competition.
And so we return to the issue of choking financial strain for a majority of students.
There are basically two welfare solutions to this issue: Grants and loans. Here in Israel we have traditionally leaned towards the former, but it has been a sprinkling, unable to satisfy the lion.
Essentially, there are three hungry lions: The poorest students, middle class students ineligible for scholarships, and the universities, who fail to raise enough income from tuition.
Labor Knesset Member Prof. Yuli Tamir is set to propose a Knesset bill that would deal with this issue. She would like to establish a system of student loans, based on a model used in Australia.
The plan includes several main points:
a) Uniform tuition, based on an average, fixed cost for instruction.
b) National insurance grants, available to all students, to cover all tuition costs
c) Loans to be gradually repaid, starting from the time a graduate begins earning more than the average wage. Until he reaches this income, he will not be required to repay the loan.
d) Repayments will be considered tax deductible.
Many questions remain: How much interest would the loans carry? How would fund them? What would the approximate default rate be? How much would such an apparatus cost?
All these questions must be answered, but we must not shy away from holding deep, wide-ranging debate about this wise, and important, proposal.
