Essentially, in the Australian model, every student who is eligible for college gets to go to college with the help of a loan from the government. The repayment of this loan is through an interesting tax mechanism: when the student enters the workforce, he/she pays taxes at a higher tax rate (say, 32 percent instead of 30 percent) until the loan is repaid. Prepayment is possible at a premium. More importantly, this additional tax kicks in only when the income exceeds a certain minimum which, I believe, is the median income in that country.
Drawing from the Australian example, Abi advocates a middle path to reform education in India. Interesting post.
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Shanelle
Dec 12th, 2006 at 12:15 am | #
Innovative strategies are the required so why not experiment