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The
worldwide shift of higher education costs
from governments and taxpayers to parents and students
By
D. Bruce Johnstone
University Professor of Higher and Comparative Education and former
SUNY Chancellor

igher
education is experiencing a worldwide shift of cost burden from
governments and taxpayers to parents and students. This shift
can be seen in the very rapid increase of higher education expenses
in the United States, as well as in the introduction of tuition
where charging fees for public higher education has been heretofore
unknown or politically unsupportable, as in the United Kingdom,
China, many of the countries of Latin America, and most of the
Socialist nations of the former Soviet Union and Eastern and Central
Europe.
The
shift may also take the form of more nearly full cost recovery
from formerly free or heavily subsidized room and board expenses,
or of the shift in student financial assistance from grants to
loans, as in the United States or the United Kingdom, or simply
of the explosive growth in a tuition-dependent private sector,
as in much of Latin America and Asia. This shift in the burden
of higher education costssometimes referred to as "cost
sharing," or a part of "revenue diversification"is
having reverberations throughout the world, as in (1) an increasing
political backlash in the U.S. against mounting higher education
costs and expenses, even though tuitioncontrary to popular and
journalistic beliefhas not increased significantly in most state
public sectors; (2) the advent of tuition, along with the phasing
out of student grants, in the UK, as well as the grudging acceptance
of tuition in the Netherlands and the speculation that it may
soon emerge in Germany and elsewhere on the European continent;
(3) the sudden emergence of relatively steep tuition in China
and some other nations that still hold (at least somewhat) to
a Marxist-Socialist ideology; (4) the heavy reliance on private,
tuition-supported colleges and universities in much of Asia and
Latin America; (5) the bitterness with which even a small tuition
was resisted in Mexico’s National Autonomous Universityeven in
the face of almost certain worsening austerity if government revenues
cannot be supplemented; and (6) the emergence of private, tuition-supported
colleges and universities in Russia, China and other nations that
until only recently forbade both tuition and non-state universities.
Cost
sharing can be expected to meet resistance in countries with long
traditions of free tuition. This resistance may include both students
and families of privilege, who have been the traditional beneficiaries
of this form of public largesse, as well as students and
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families
of middle and lower economic status, who may see these rising
costs as another barrier to participation in higher education.
In many countries, however, the absence of any tuition in public
higher education may put even greater burdens on public treasuries,
and may lead either to severe enrollment limitations (at least
in the free or low-cost public sector), or to equally severe overcrowding
and a loss of educational qualityin either case, to the greatest
detriment of the "non-elite."
Furthermore,
a shift of some higher education costs to parents and studentssupported
by need-based grant and student loan programscan actually serve
the cause of equity (as in the notion that those who benefit should
at least share in the costs), efficiency (the idea that the payment
of some tuition may make students and families more discerning
consumers, and the universities more cost-conscious providers),
and responsiveness (as the need to supplement public revenue with
tuition, gifts and grants may make universities more responsive
to individual and societal needs). Thus, some increased costs
borne by parents and students are probably both inevitable and
economically rational, and may be an important solution to the
worldwide problem of increasingly importantyet increasingly underfundeduniversities.
In
response to this worldwide issue, the UB Graduate School of Education’s
Center for Comparative and Global Studies in Education, with the
support of the Ford Foundation, has initiated the International
Comparative Higher Education Finance and Accessibility Project
(www.gse.buffalo.edu/org/
IntHigherEdFinance). The project will (1) create an international
database on the costs of higher education borne by students and
parents; (2) examine models of tuition and aid policies for specific
countries, and compare and contrast official policies, unofficial
practices, trends and their consequences both to the financial
health of institutions and to higher education accessibility;
(3) document emerging solutions (e.g., loans, interest subsidies,
means-tested grants, tax benefits, graduate taxes) to the access
dilemma created by the shift of higher education costs to students
and families; and (4) establish partner centers in a number of
countries, beginning with China, Russia and South Africa, with
the intention of bringing young scholars to Buffalo and to the
Center for Comparative and Global Studies in Education to help
the work of the project, and to help build greater analytical
capacity in these and other countries.
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D. Bruce
Johnstone is the project director of the International Comparative Higher
Education Finance and Accessibility Project. He is the author of Sharing
the Costs of Higher Education: Student Financial Assistance in the United
Kingdom, the Federal Republic of Germany, France, Sweden, and the United
States (1986), and many other books, monographs, encyclopedia entries
and articles dealing with international comparative higher education
finance and cost sharing.
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