Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/148452
Authors: 
Chapman, Bruce
Year of Publication: 
2016
Citation: 
[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Year:] 2016 [Issue:] 227
Abstract: 
Around nine countries currently use a national income contingent loan (ICL) scheme for higher education tuition using the income tax system. Increased international interest in ICL validates an examination of its costs and benefits relative to the traditional financing system, government-guaranteed bank loans (GGBLs). Bank-type loans exhibit poor economic characteristics: namely, repayment hardships for the disadvantaged, and default. This damages credit reputations and can be associated with high taxpayer subsidies. ICLs avoid these problems, but effective collection of debt requires a sophisticated mechanism.
Subjects: 
income contingent loans
government-guaranteed bank loans
consumption smoothing
default insurance
repayment burdens
JEL: 
I20
I21
I22
I23
I28
H42
Persistent Identifier of the first edition: 
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.