Income-contingent loans: the fair(er) financing system.
Australian economist Bruce Chapman is the architect of a financing system for students that can also be adopted in other areas of life. He says: “Income-contingent loans promote social harmony, offset the drawbacks of the brain drain from emerging economies and can sometimes even protect the environment.”
Professor Chapman, Australian universities charge tuition fees, yet no student needs to worry about getting into debt. How does that work?
This concept is fundamentally different from the usual financing methods…
How does it affect a country or a society when young people start off their professional lives in this way?
Does that mean that an income-contingent financing arrangement could even have a positive impact on environmental protection?
So are you saying that income-contingent financing would also prevent the gap between rich and poor from widening?
In Germany, tertiary education is financed by the government, i.e. by tax payers, although the majority of the population does not attend university.