Providing More Access and Success in Higher Education: Possible Goals, Principles, and Issues Arthur M. Hauptman 25 May 2009 Islamabad, Pakistan

Three Steps in the Process of Improving Performance in Any Public Policy Issue Identify Key Goals Develop Policies that Link Directly to Goals Implement Policies that Recognize the Political, Economic, Cultural and Societal Environment of the Country

Goals to Improve Access and Success of Higher Education Increase Overall Participation Rates Expand Lifelong Learning Opportunities Increase Chances of Student Success Reduce Chronic Disparities in Student Access and Success

Policies to Increase Overall Participation Rates Increase public funding of public universities while keeping tuition and other fees low –Requires a high and sustained level of public support Raise tuition and other fees in public universities and provide a lot of financial aid –Requires linkage between fees and financial aid Create and expand access-oriented public institutions that focus on sub-bachelor’s degrees –Requires a good system of quality assurance Expand private sector of higher education –Requires adequate financial aid and good system of quality assurance

Expand Lifelong Learning Opportunities Create and expand access-oriented insts that cater to needs of those already in the work force or looking for second chance Develop a financial aid system that seeks to meet the particular needs of students older than traditional college going age, including: –Grants that provide support to students who are financially independent of their parents –Student loans with liberal eligibility rules that serve students from a broad range of incomes –Tax benefits designed to help meet fees and expenses of students already in work force

Increase Chances of Student Success as Measured by Higher Attainment or Completion Rates Difficult to establish financial aid programs that lead to greater success Develop funding formulas that pay institutions for students who complete a year of study or graduate Expand early intervention approaches (non-financial aid) that better prepare students to do college level work

Reduce Chronic Disparities in Student Access and Success Providing grants and scholarships based on need is traditional way of improving equity –Important that aid is well targeted on needy students –Not likely to help much on improving success Student loans are also frequently used to improve equity –But tackling and resolving difficult student loan design issues are key to being successful in this regard –Loans also unlikely to help on improving success Supply side approaches such as early intervention and paying institutions more for poor students they enroll and graduate are likely to be more effective in addressing equity issues

Summary of Possible Goals and Policies

Some Design Principles for Improving Access and Success Funding, fees, and financial aid policies should work in concert with each other Strategies should employ a mix of demand-based and supply-oriented policies A successful approach should draw on both public and private resources and fit the strengths of each Financial aid programs should be designed to fit the economic and political structure of the country –Fee levels, tax system compliance, tradition of consumer loans

Financial Aid Design Issues How should financial aid be financed? –Government, fees, private donations How should the program be administered? –Centrally by government, by institutions, or NGOs? How should student financial need be measured? –Simple is often better but is it fair enough? Should merit be built into student aid? –Possibly combined with need? Are student loans a realistic possibility? –Is there a viable private banking sector? –Is there a tradition of consumer loans? Can the tax system be used for higher education? – Level of tax compliance is key in this regard Is income contingent repayment a possibility? Are tax benefits a realistic possibility?