Higher Education Financing International Experience: Loan Repayment Burden Lessons for Ireland Bruce Chapman Australian National University.

Slides:

Advertisements

Similar presentations

Credit is the promise to repay borrowed money (principle) with interest over a certain period of time. Credit cards, mortgages, car loans, student loans,

Advertisements

An empirical comparison of Housing expenditures and user costs for the four Danish tenures Jens Lunde Department of Finance, Copenhagen Business School.

Student finance Sarah Cullen Head of Widening Participation University of Sussex.

Chapter 04: Fixed Interest Rate Mortgage Loans McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

Student Finance 2013/14. What support could students get?

The Lifecycle Impact of Alternative Higher Education Finance Systems in Ireland Darragh Flannery 1, Cathal O’Donoghue 2 European meeting of the international.

Consumer Math p Definitions  Down payment – part of the price paid at the time of purchase  Financed – borrowed  Mortgage – a property loan.

1 The Consumer Price Index (CPI) n The Bureau of Labor Statistics collects price data on… –100,000 items –85 different locations around the country –19,000.

Chapter 7 homework Number 2: Scott Anderson Number 4: Eikeem Barron Number 10: Kelly Beck Number 14: Meghan Bouvier Number 16: Thomas Caruso Alternate:

Session 1 : Ireland’s Society in Economic Downturn Kieran Walsh Central Statistics Office.

The Economy. Constant-price GDP and Quarterly % Change Source: Office for National Statistics.

Measurement of Output, Employment & Prices. Why Measurement Matters Before we get into models of economic behaviour we need to look some definitions and.

Mainstream Enterprise Statistics Richard McMahon Head of STS Division Central Statistics Office, Ireland.

The Consumer Price Index (CPI) n The Bureau of Labor Statistics collects price data on… –100,000 items –85 different locations around the country –19,000.

Governor Stefan Ingves Introduction on monetary policy Riksdag Committee on Finance 18 September 2012.

Tertiary Education Financing Models Around the World: Conceptual basis, policy implications and recent international experience Bruce Chapman Crawford.

Housing Market Analysis, SE London Housing Partnership Carole Oliver, December 2010.

Wellington Group Exchange Session G: Financial Crisis – What does this mean for Higher Education? Reflections on Student Loan Schemes Bruce Chapman Crawford.

Chapter Measuring the Cost of Living 16. The Consumer Price Index Consumer price index (CPI) – Measure of the overall cost of goods & services – Bought.

Chapter 11 Measuring the Cost of Living

Principles of Macroeconomics: Ch 11 Second Canadian Edition Chapter 11 Measuring The Cost of Living © 2002 by Nelson, a division of Thomson Canada Limited.

London, Microsimulation in decision support The latest news about our results József Csicsman

McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Chapter Eighteen Consumer Loans, Credit Cards, and Real Estate Lending.

Liam Dowson 13 September 2015 Student finance. The costs of university Tuition fees Universities are able to charge up to £9,000 per year Can charge less.

The Market for Loanable Funds  For the economy as a whole, savings always equals investment spending  In a closed economy, savings is equal to national.

CHAPTER SEVENTEEN Consumer Loans, Credit Cards, And Real Estate Lending

1 Lecture Notes Lecture Four (updated: 16 Oct. 2007) FINA 521 INVESTMENT APPRAISAL.

1 FINC3131 Business Finance Chapter 5: Time Value of Money: The Basic Concepts.

Topic 2: Recent developments and prospects IMF IMF (Article IV) Staff Report on Ireland (Article IV) Staff Report on Ireland European Commission European.

1) You took a 1,000$ borrower, with an annual interest rate of 3 percent. How much money you will have to return after one year? After 2 years? After.

Why Some Inflation is Better Than Deflation. Some Benefits of Low Inflation: Inflation causes real interest rates to be lower than nominal interest rates.

THE USE OF ADMINISTRATIVE BANKING AND INSURANCE DATA 1 Presented by Hazel Corbin Statistics Adviser, ECCB Palm Haven Hotel Saint Lucia 3 to 7 February,

The Perfect Demographic Storm: Extending the Benefits of Higher Education to the Next Wave of Students MASFAA Conference November 15-17, 2006 Julie Shields-Rutyna.

©2012 McGraw-Hill Ryerson Limited 1 of 23 Learning Objectives 1.Characterize trade credit as an important form of short-term financing and calculate its.

 What are advantages of credit  What are disadvantages of credit.

University Choices Student Finance. University choices You should be in the process of receiving offer from universities you have applied to A few of.

Chapter 11 Inflation and Unemployment Inflation  Is the general increase in the prices of goods and services in an entire economy.  For ex: an annual.

Accessing Eurostat Data Tanvi Desai Data Manager LSE Research Laboratory Research Laboratory ESRC Research Methods Festival 2008.

Higher Education Financing: Conceptual Issues Bruce Chapman Crawford School of Public Policy Australian National University Prepared for Higher Education.

 A piece of economic data (statistic)  indicates the direction of an economy.

IGCSE®/O Level Economics

Alternative Mortgage Instruments

Time preferences, value and interest Time preference Time value of money Simple and compound interest Determination of Market interest rate Market equilibrium.

Student support, loans and allowances in England – addressing equity of access Ruth Thompson, Director of Higher Education Strategy and Implementation.

Circular Flow Model and Economic Activity

Introduction to the UK Economy. What are the key objectives of macroeconomic policy? Price Stability (CPI Inflation of 2%) Growth of Real GDP (National.

8.4 TLW apply loan and investment tables Banks provide tables to help people calculate their repayments.

Measuring Political Risk of Hungarian Social Security System Is there a really good reform? Juraj Kopecsni.

Responsibilities and Costs of Credit

Student Finance Full time BSC Social Work programmes commencing 2016/17* *(figures based on 2015/16 and may change) Student Services.

HE Finance: Lessons from the UK Restructuring Student Loans Conference, Washington DC, 13 th June 2016 Lorraine Dearden University College London and Institute.

Migration in Ireland: Trends and Economic Impacts Yvonne McCarthy.

Bruce Chapman Australian National University

Unit 5 - Personal Finance #

CHAPTER SEVENTEEN Consumer Loans, Credit Cards, And Real Estate Lending

Public sector pay policy: costs and consequences

Bruce Chapman Australian National University

HE finance in England: what we have learnt from Australia?

Trends in Higher Education Series

Introduction to the UK Economy

Student Finance.

CHAPTER SEVENTEEN Consumer Loans, Credit Cards, And Real Estate Lending

Inflation Rising prices.

Interest rate, Nominal Interest Rate & Real Interest Rate.

Owner occupied housing in the Icelandic CPI, a survey of simple user cost for a quarter of a century. Rósmundur Guðnason, Statistics Iceland 16th meeting.

Student Finance CRAIG DOVE.

Owner occupied housing in the Icelandic CPI, a survey of simple user cost for a quarter of a century. Rósmundur Guðnason, Statistics Iceland 16th meeting.

Inflation Part II.

Presentation transcript:

Higher Education Financing International Experience: Loan Repayment Burden Lessons for Ireland Bruce Chapman Australian National University

Overview.Reminder: basic difference between GGBLs and ICL is collection rules: time OR income contingent;.Repayment burdens of bank loans: meaning, importance and research history (Colombia 2005);.Examples: The US, Vietnam and Thailand;.The Irish hypothetical illustration explained;.RBs for Ireland: Policy issues.

Repayment burden = (Loan Repayment)i/(Income)i.Why do RBs matter: consumption hardship and defaults;.What are ICL RBs (max by law: 10% Australia 9% England);.Where did all this come from (Colombia)?

US RBs for Low Income Borrowers (10 th and 25 th Quantiles) Males

US RBs for Low Income Borrowers (10 th and 25 th Quantiles) Females

Data: EU-SILC Data for the calculation of Earnings Profiles and Repayment Burdens come from the EU Survey of Income and Living Conditions This is an annual survey collected by the Central Statistics Office – Earnings data are high quality due to administrative checks carried out by the CSO However, graduates seem to be under-represented in the survey (about 10% of sample, compared to 26% of workers in the QNHS) – So needed to pool data for to improve sample sizes Annual earnings were converted into 2015 values using quarterly CPI inflation figures For each possible number of years of labour market experience, various quantiles of the real earnings distribution were calculated – the 10 th, 25 th, 50 th, 75 th and 90th

An Irish Hypothetical Loan Scheme Described and Illustrated

Real and Nominal Repayments: €6000 fees pa, €6000 maintenance pa, 10 years repayment

Irish graduate male age-earnings profiles by quantile

Irish graduate female age-earnings profiles by quantile

RBs for Ireland Male graduates: E6000pa

RBs for Ireland Female graduates: E6000pa

RBs for Ireland Male graduates, E12000 pa

RBs for Ireland Female graduates: €12000 pa

RBs and an Irish mortgage loan system: Results and some reflections.As with other countries an Irish mortgage-loan systems will have very low RBs for low income graduates (upwards of 60%+ for many graduates);.An ICL could be designed with maximum RBs of 8- 10%;.Policy issues with an Irish ICL: rates of interest; prices; IRS collection; graduates leaving Ireland with debts.