Income contingent university loans: policy design and an application to Spain

Antonio Cabrales, Maia Güell, Rocio Madera and Analía Viola

No 2018-06, Policy Papers from FEDEA

Abstract: In Europe, the need for additional funding coming from either budget cuts and/or increased costs due to increased competition has reopened the debate on the financing of university systems. An attractive alternative to the current general-tax financed subsidies are Income Contingent Loans (ICL), a flexible scheme that puts more weight on private resources while enhancing progressivity. One challenge of the viability of ICL systems is the functioning of the labor market for university graduates. This paper offers a general analysis of the economics of ICL, followed by an application to Spain.

Date: 2018-07
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Related works:
Journal Article: Income contingent university loans: Policy design and an application to Spain (2019)
Working Paper: Income contingent university loans: policy design and an application to Spain (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:fda:fdapop:2018-06

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