1. Show me the money: Financing Higher Education
Dr kofi Nkrumah-young
ACHEA, 2018 – EMBRACING THE FUTURE: CREATIVE APPROACHES TO HIGHER EDUCATION
Hyatt Regency, Port of Spain, Trinidad
Show me the money: Financing Higher Education

2. Matrix of funding strategies
Social Engagement
Low
High
Personal Resources
Direct Fees
Tuition Fees
User Fees/ Pay as you go
Loan Programmes
Employers’ Support
Scholarships
HEART Tax
Education Tax
Institutional Subsidy
Third Stream Funding - Subsidy
Cost cutting
Suppressed Salaries
Government Funding
Subvention
Free Education Policy
GATE in Trinidad

3. Main Problems
Limitations in resources – hinderance to Free Education to the tertiary levels
Cost containment strategies restrict access - quantity is a function of cost
Ex post pricing restricts managerial action and initiative because price is equal to cost - hence HEIs do not benefit from efficiency gain
Cross the board subsidy leads to inequity as those in the higher earning categories derive more benefits
There are preconditions to funding models - linked to who controls
Course offerings
Curriculum Development
Enrolment numbers
Staffing salaries and numbers
Wages of graduates

4. The Caribbean Experience
Overwhelming support for public funding of education
Desirable to support international norm for free education to secondary level
At tertiary level the Caribbean does not satisfy all the conditions
Free education
Privatisation
Income contingent loans
The level of central control hinders third stream income at the tertiary level
Quality Trap possibility – Ad hoc nature of funding tertiary

5. Alternatives in the context of Cost Sharing
Education Development Insurance Fund (McIntyre Report, 1990)
National Education Savings Plan (Holness, 2012)
Higher Education Participation Scheme (Nkrumah-Young, 2012)
Alternatives in the context of Cost Sharing

6. Education Development Insurance Fund (McIntyre Report, 1990)
One time grant from Government, 35% HEART Trust contribution, other grants and balance in SLB
Fund - insurance against loans to students and institutions for educational purposes
Loans disbursed through special windows from commercial institutions
Potential beneficiaries should open accounts with institutions 36 months prior to borrowing

7. Holness (2012) National Savings Plan
Parents set aside amounts in an account for Tertiary education
Savings for 18 years
Government Matching contribution

8. Higher Education Participation Scheme (Nkrumah-Young, 2012)
Citizens contribute a portion of salary to a fund
The contribution repayable with interest after 7 years (similar to the NHT Scheme)
Employers make a non-refundable contribution to the scheme
Students access the fund for Tuition and other learning expenses
Repayment is income contingent and suspended for period of unemployment

9. References
Douglas, L. (2012) Creative Ways Needed to Fund Tertiary Education – Holness. Jamaica Observer, October 12, 2012 Johns, R. L., Morphet, E. L. & Alexander, K. (1983) The Economics of Financing Education. Englewood Cliffs, New Jersey: Prentice-Hall. McIntyre, A. (1990) Report by the Task Force to Minister of Education: Financing Education in Jamaica. Kingston: Ministry of Education Nkrumah-Young, K (2010) Reforming Higher Education in the Caribbean: Implications for Administrators Journal of Education and Development in the Caribbean Vol.12, No.1, Nkrumah-Young, K. (2015) The Quality/Financing Conundrum in Caribbean Higher Education in Quality in Higher Education in the Caribbean, Anna Perkins (ed) (2015) Kingston, Jamaica: UWI Press ISBN: Nkrumah-Young, K., Huisman, J. & Powell, P. (2010) The Impact of Funding in Higher Education in Jamaica in Education in Small States: Global Imperatives, Regional Initiatives and Local Dilemmas (2010) Mayo, P. (ed.). ISBN: UK: Routledge Psacharopoulus, G. & Patrinous, H. A. (2002) Returns to Investment in Education. The World Bank. Latin America and the Caribbean Region Education Sector Unit. Available at: Sherlock, P. M (1986) Report of the Task Force on Tertiary Education. Kingston: Ministry of Education. Sherlock, P. M. (1991) Restructuring Tertiary Education in Jamaica: Principles and Proposals. Kingston: Ministry of Education. Tsang, M. C (1998) The Financing of Education in Jamaica: Issues and Strategies. Washington: Inter-American Development Bank. Zheng, H. Y. (2002) Returns on Investment in Public Higher Education. Ohio: OAIRP Conference