Abstract
We discuss the welfare implications of income contingent loans (ICL) as a government aid program for higher education. We start by introducing some Korean experiences of student loans programs and present more general arguments on both the efficiency and the equity aspects of ICL as compared to other government programs such as normal (mortgage-type) loans, grants and government guaranteed loans. Lastly, we suggest a scheme that could enhance the efficiency of loan programs.
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References
Korean Ministry of Education, Science and Technology (2012) ‘Student Loans Programs in Korea’, Online at http://www.index.go.kr/
Stiglitz, J. and J. Yun (2013) ‘Optimal Provision of Insurance against Unemployment from a Lifetime Perspective’, National Bureau of Economic Research Working Paper No. w19064.
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© 2014 International Economics Association
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Yun, J. (2014). Aid Programs for Higher Education. In: Chapman, B., Higgins, T., Stiglitz, J.E. (eds) Income Contingent Loans. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137413208_19
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DOI: https://doi.org/10.1057/9781137413208_19
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-41319-2
Online ISBN: 978-1-137-41320-8
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