Tuition payments, usually known as tuition in American English[1] and as tuition fees in Commonwealth English,[citation needed] are fees charged by education institutions for instruction or other services. Besides public spending (by governments and other public bodies), private spending via tuition payments are the largest revenue sources for education institutions in some countries. In most developed countries, especially countries in Scandinavia and Continental Europe, there are no or only nominal tuition fees for all forms of education, including university and other higher education.[2]
A number of countries, such as South Africa, the United States and the United Kingdom, have "up-front tuition policies."[3] These policies generally include a tuition fee that is large enough to give parents or guardians "a responsibility to cover some portion of their children’s higher education costs."[3] This responsibility can make it difficult for a low-income student to attend college without requiring a grant or one or more loans.
In Hungary the annual tuition at a public university may exceed 15,000 euros. Only 32 percent of the students pay tuition that averages 1,428 euros for a year at a 1st-degree level and 1,552 for a year at the 2nd-degree level. It is important to note that a student in Hungary has an opportunity to receive a scholarship of up to 3,000 euros for living expenses and nearly 4,000 euros for good grades.[4]
In Lithuania the highest tuition is nearly 12,000 euros and 37 percent of the students pay.[4]
Tuition fees in the United Kingdom were introduced in 1998, with a maximum permitted fee of £1,000. Since then, this maximum has been raised to £9,000 (more than €10,000) in most of the United Kingdom, however, only those who reach a certain salary threshold pay this fee through general taxation. The UK state pays for the poorest or low income to access a university, thus university attendance remains high. There are record levels of disadvantaged people accessing a university. Scotland and Wales have abolished tuition. There are no scholarships and the only assistance is a possible loan from the government.[4]
French tuition fees are capped based on the level of education pursued, from 183 Euros per year for undergraduate up to 388 for doctorates. Some public universities have autonomous status, meaning that they can charge much higher tuition, and all private universities charge tuition.
In the German education system almost all universities and most universities of applied sciences are funded by the state and do not charge tuition fees. In exceptional cases universities may offer courses for professionals (e.g. executive MBA programs), which may require tuition payment. Some local governments have recently decided that students from non-EU countries can be charged, although ERASMUS students, students from developing countries and other special groups are exempt.[5][6] In addition, some private institutions of higher education run on a tuition-based model.
All Nordic countries provide higher education free of charge to their own citizens. The Nordic education systems are almost entirely publicly funded. In Nordic countries education is seen as a civil right and a public service rather than a commodity. The issue of education is seen in these countries as an issue of equality. This is in part because high levels of education are a benefit to the development of society, including business and industry.[7]
In Greece there are no tuition fees as Bachelor-level higher education and some Master-level post-graduate education is provided for free to all Hellene (Greek) citizens as a benefit of citizenship paid by taxes. Universities accept students who have excelled at high school, with the selection being done through the Panhellenic Examinations, a system of state-administered examinations. Furthermore, it is difficult for mature students to be accepted at universities. Doctorate-level higher education is often also provided for free, but some universities may charge fees for PhD degrees. Students may resort to registering at private universities (called colleges, κολέγια), which charge tuition fees, or emigrate to other countries in order to get an education.
Tuition is charged at different rates from one type of institution to the next. Net tuition indices mark an increase in the "relative real burden" for payments at various types of institutions for higher education; in the period between 1980 and 1995; example, this burden increased by approximately 80 percent for students at public universities and by 148 percent for students at private universities.[9] More than half of public research universities charge students differential tuition based primarily on their major and their year in college, increasing normal tuition by up to 40 percent.[10]
Most students or their families who pay for tuition and other education costs do not have enough savings to pay in full while they are in school.[11] Some students must work or borrow money to afford an education. In the United States, student financial aid is available to defray the cost of a post-secondary education: "Financial aid is typically thought to exert the most influence in [attendance], when admitted students consider whether to enroll in a particular institution."[12] It is often the case that the lower the cost of the school, the more likely a student is to attend.
Developed countries have adopted a dual scheme for education; while basic (i.e. high-school) education is supported by taxes rather than tuition, higher education usually requires tuition payments or fees.
People may purchase tuition insurance to protect themselves from fees related to involuntary withdrawal (illness, death of a parent or guardian, etc.)
History
Study comparing college revenue per student by tuition and state funding in 2008 dollars
In medievalEurope, universities were mainly institutions of the Catholic Church. As they mainly trained clergy, most of these universities did not have any need to exact fees from the students[citation needed] with one notable exception: during the 12th century, while under the supervision of Pierre le Mangeur, the University of Paris began collecting two sous weekly in tuition.
Later, the main duty of universities in most Protestant countries was the training of future civil servants. Again, it was not in the interest of the state to charge tuition fees, as this would have decreased the quality of civil servants. On the other hand, the number of students from the lower classes was usually kept in check by the expenses of living during the years of study, although as early as the mid-19th century there were calls for limiting the university entrance by middle-class persons.[citation needed] A typical family, however, could not afford educating a child or young adult, even if the education itself was free. A similar situation exists today in many Third World countries, where the expenses of "free" schooling (food, books, school uniform, etc.) prevent some children from attending any school.
After World War II the tuition systems of all of today's advanced democracies still were highly similar: Education institutions in all countries charged no or only very low tuition fees.[2] It was not before the 1950s that the countries' education systems developed in different directions. Some countries, especially Anglophone countries (for example the United States) but also Asian countries such as Japan, introduced considerable tuition payments already in the early post-war period.[2] Other countries, particularly in Scandinavia and continental Europe, in contrast remained tuition-free. These developments were unrelated to the massive educational expansion that took place at the same time.
Since the early 1970s, the average cost of tuition has steadily outpaced the growth of the average American household. This trend continued particularly under President Reagan's higher education policies in the 1980s. Likewise, there has been a steady decrease in federal funding for grants and a rise in the interest rates of most major student loans, leaving many students struggling to pay debt for years after graduation.
College tuition for undocumented students
The Development, Relief, and Education for Alien Minors (DREAM) Act was introduced in the U.S. Senate. It would allow the estimated 50,000 to 65,000 undocumented students in the United States to gain in-state tuition as well as a path towards American citizenship. The Act would apply only to those students with tangible proof of residence in the United States before the age of 18. This Act has stirred debate in numerous groups, including institutions, families, and the Senate itself.
As of March 2013, undocumented students in most States were required to pay the higher out-of-state students' tuition charged at public universities, often between $20,000 and $35,000 at a local public university. In addition, these students were denied federal assistance as they lacked valid Social Security numbers. Because such students often come from comparatively poor families, the costs are too high to allow many undocumented students to seek university education in the United States.[14]
The Higher Education Act 2004 is an Act of the Parliament of the United Kingdom that introduced several changes to the higher education system in the United Kingdom, the most important and controversial being a major change to the funding of universities, and the operation of tuition fees, which affects England and Wales. University funding is a devolved matter for Northern Ireland and Scotland. After complex and controversial debates, the Higher Education Bill received royal assent on 1 July 2004.
A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school. It also differs in many countries in the strict laws regulating renegotiating and bankruptcy. This article highlights the differences of the student loan system in several major countries.
Tuition fees were first introduced across the entire United Kingdom in September 1998 under the Labour government of Tony Blair to fund tuition for undergraduate and postgraduate certificate students at universities; students were required to pay up to £1,000 a year for tuition. However, only those who reach a certain salary threshold (£21,000) pay this fee through general taxation. In practice, higher education (HE) remains free at the point of entry in England for a high minority of students.
A private school is a school not administered or funded by the government, unlike a public school.
Free education is education funded through government spending or charitable organizations rather than tuition funding. Many models of free higher education have been proposed. Primary school and other comprehensive or compulsory education is free in many countries. Tertiary education is also free in certain countries, including post-graduate studies in the Nordic countries. The Article 13 of International Covenant on Economic, Social and Cultural Rights ensures the right to free education at primary education and progressive introduction of it at secondary and higher education as the right to education.
Student financial aid in the United States is funding that is available exclusively to students attending a post-secondary educational institution in the United States. This funding is used to assist in covering the many costs incurred in the pursuit of post-secondary education. Financial aid is available from federal and state governments, educational institutions, and private organizations. It can be awarded in the form of grants, loans, work-study, and scholarships. In order to apply for federal financial aid, students must first complete the Free Application for Federal Student Aid (FAFSA).
A public university or public college is a university or college that is owned by the state or receives significant funding from a government.
In the United States, higher education is an optional stage of formal learning following secondary education. It is also referred as post-secondary education, third-stage, third-level, or tertiary education. It covers stages 5 to 8 on the International ISCED 2011 scale. It is delivered at 3,931 Title IV degree-granting institutions, known as colleges or universities. These may be public or private universities, research universities, liberal arts colleges, community colleges, or for-profit colleges. US higher education is loosely regulated by the government and by several third-party organizations.
College tuition in the United States is the cost of higher education collected by educational institutions in the United States, and paid by individuals. It does not include the tuition covered through general taxes or from other government funds, or that which is paid from university endowment funds or gifts. Tuition for college has increased as the value, quality, and quantity of education have increased. Many feel that increases in cost have not been accompanied by increases in quality, and that administrative costs are excessive. The value of a college education has become a topic of national debate in the U.S.
Education in Chile is divided in preschool, primary school, secondary school, and technical or higher education (university).The levels of education in Chile are:
The William D. Ford Federal Direct Loan Program provides "low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education ... rather than a bank or other financial institution." It is the largest single source of federal financial aid for students and their parents pursuing post-secondary education and for many it is the first financial obligation they incur, leaving them with debt to be paid over a period of time that can be a decade or more as the average student takes 19.4 years. The program is named after William D. Ford, a former member of the U.S. House of Representatives from Michigan.
In discussions of the cost of college in the United States, the cost of attendance (COA) is a statutory term for the estimated full and reasonable cost of completing a full academic year as a full-time student. The cost of attendance is published by each educational institution and includes:
Student loans and grants in the United Kingdom are primarily provided by the government through the Student Loans Company (SLC), an executive non-departmental public body. The SLC is responsible for Student Finance England and Student Finance Wales, and is a delivery partner of Student Finance NI and the Student Awards Agency for Scotland. Most undergraduate university students resident in the United Kingdom are eligible for student loans, and some students on teacher training courses may also apply for loans. Student loans also became available from the 2016/17 academic year to postgraduate students who study a taught Masters, research or Doctoral course.
In the United States, student loans are a form of financial aid intended to help students access higher education. In 2018, 70 percent of higher education graduates had used loans to cover some or all of their expenses. With notable exceptions, student loans must be repaid, in contrast to other forms of financial aid such as scholarships, which are not repaid, and grants, which rarely have to be repaid. Student loans may be discharged through bankruptcy, but this is difficult. Research shows that access to student loans increases credit-constrained students' degree completion, later-life earnings, and student loan repayment while having no impact on overall debt.
Tuition freeze is a government policy restricting the ability of administrators of post-secondary educational facilities to increase tuition fees for students. Although governments have various reasons for implementing such a policy, the main reason cited is improving accessibility for working- and middle-class students. A tuition fee freeze is a common political goal of the Canadian student movement, especially the Canadian Federation of Students.
Student debt is a form of debt that is owed by an attending, withdrawn, or graduated student to a lending financial institution.
A graduate tax is a proposed method of financing higher education. It has been proposed in the United Kingdom and the Republic of Ireland.
Tuition fees existed in French universities prior to World War II, and have remained at approximately the same level as % of total funding. From 2007, universities in France have been granted a greater degree of independence, including the ability to increase fees in excess of the maximum established by the state for postgraduate studies. In November 2018, it was announced that with the beginning of the academic year 2019/20, non-European students would be charged higher tuition fees.
Tuition fees in the United Kingdom were reintroduced for full-time resident students in 1998, as a means of funding tuition to undergraduate and postgraduate certificate students at universities. Since their introduction, the fees have been reformed multiple times by several bills, with the cap on fees notably rising to £9,000 a year for the 2012-13 academic year.
Financial issues facing students in the United States include the rising cost of tuition, as well as ancillaries, such as room and board, textbook and coursework costs, personal expenses, and transportation.
1 2 3 Garritzmann, Julian L., 2016. The Political Economy of Higher Education Finance. The Politics of Tuition Fees and Subsidies in OECD countries, 1945-2015. Basingstoke: Palgrave Macmillan.
1 2 Marcucci, Pamela N. and D. Bruce Johnstone, "Tuition Fee Policies in a Comparative Perspective: Theoretical and Political Rationales", Journal of Higher Education Policy and Management, Volume 29, Number 1 (2007), pp.25-40. (Taylor & Francis Online, retrieved 13 March 2012)
↑ DesJardins, Stephen L., "Assessing the Effects of Changing Institutional Aid Policy", Research in Higher Education, Volume 42, Number 6 (2001), pp.653-78. (JSTOR, retrieved 13 March 2012)
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