withoutaface said:
I endorse a shareholder system to replace the current one, whereby a certain individual may choose to buy 'shares' in the education of, say, a hundred science students, and later, once they enter the workplace, they receive a certain percentage of that cohort's income for a given number of years. The benefits of this over HECS are as follows:
1. Students will be able to opt for a variety of packages, from a basic tuition fees only, to one which covers both that and certain living expenses, for a higher percentage of their future earnings. The way I see it, this will increase accessibility and help to overcome problems where students can't afford to move to the big cities to go to university.
2. It will make students more aware that at any moment people might refuse to buy shares for their next semester's worth of tuition, and so will give a greater incentive to work hard.
3. Gives universities greater incentives to find alternative sources of funding, such as what has occurred in the United States with Vanderbilt University, which only gets 9% of its income from tuition fees.
4. Creates closer to the right number of skilled graduates for any particular market condition. This is because when there are not enough students being sponsored compared to what the market requires, the projected income of these students will be a lot higher, and this will encourage sponsorship to rush into this sector, and once the right number is reached, prices will once again communicate this to investors, and they will invest in other degrees instead.
5. Lower taxes because taxpayers are no longer subsidising higher education.
Look, there are problems with the above.
1. I really don't get how it will increase accessibility. It may increase it in some professions but likewise it may decrease accessibility into other. You keep mentioning that the market will signal which areas investors will invest in and this will create places for degrees geard towards to profession. Well yes this might happen but it may also come at the cost of a decrease in individuals choice.
Individuals are also part of the market and should have choice. Sure you say there will still be places for caterpillar degrees (it's late but i'm sure it was mentioned pages ago) and performing arts degrees but under this policy, it restricts the number of places available.
Just because demand from industry may not be there, it doesn't mean that demand from the consumer is non-existent.
2. I don't see how that comes into place. It will probably just encourage the student to get a job or increase current working hours.
3. On a side note, I'm curious as to the breakup of that university's funding.
4. Well as some people have pointed out, there are time lags. And I recall you mentioned that the market can forecast ahead.
Will the market really forecast ahead? Because at the moment, there's (supposedly) a skill shortage and the need to import labour. Now, if the market truly did work, this skill shortage wouldn't be such big news in HRM and wouldn't register with the media.
Overall, parts of what you've proposed sound similar to co-op scholarships and traineeships that already operate. I support the HECS system but I would also like to see more industry support in education by providing funding for study in areas where there is a demand as a supplement to the system currently in place.
Oh also, apparently Britain is also adopting a system similar to HECS. Granted I don't know if this is correct and the details of their proposal but if what I've heard is correct, then the HECs system can't be that flawed.