Abstract
During the last decade, a significant development of higher education in Western Europe (WE) and OECD countries took place, particularly in Lithuania. The general number of tertiary students increased up to 2.9 times within the period 1996-2003. However, at the same time funding per student significantly decreased. The article addresses private and public higher education benefits and states that to ensure additional periodic funding of higher education it is necessary to target more to the new funding mechanisms which allow for different process participants to share in a more efficient way the educational costs and benefits. Advantages and deficiencies of different types (models) of loans used by students in foreign countries are provided, stating that the greatest number of advantages when funding investments to higher education is found in income-contingent loans.In the opinion of the authors, in order to increase the funding of higher education we should refer more to students’ payments for studies, at the same time increasing financial support for students when granting loans and providing the opportunities for all students to get such support.
Highlights
It is known worldwide that investing into knowledge and skills when striving to increase competitiveness as well as to keep and improve the living standard within a country is very important, especially so at the time when serious changes have taken place in the educational systems of numerous countries: the age ofstudents finishing school increased, many people can afford higher education, a turn has been taken from elite to mass higher education, continued education lasting the whole life is developed
10 It would be necessary to slightly reduce the number of students, since the largest number of persons with secondary education are admitted to universities in Lithuania as compared to other countries, according to the data of a statistical research conducted in Lithuania in 2002, 29.3% of workers of all professions had tertiary education
WE countries as well as Lithuania are striving for a system of mass tertiary education
Summary
It is known worldwide that investing into knowledge and skills when striving to increase competitiveness as well as to keep and improve the living standard within a country is very important, especially so at the time when serious changes have taken place in the educational systems of numerous countries: the age ofstudents finishing school increased, many people can afford higher education, a turn has been taken from elite to mass higher education, continued education lasting the whole life is developed. 2000, collected every five years by the Statistics Department regarding average gross salaries for the group of professional workers in the economy profession by economic activity types and sex as well as to the statistical data collected by "Hansa bankas" regarding the process ofstudies, the calculations performed by the authors show that the private rates of return for university studies are sufficiently high (12.87%), and a strong incentive exists for the students who finished secondary schools to study at higher institutions They are less than the private rates ofreturn in the United Kingdomwhere they are the largest among all OECD countries, USA, France, Denmark, but larger than in the Netherlands, Sweden, Germany, Canada, Japan and Italy. The educational benefit is discussed in more detail in Carr-Hill (2001) and OECD (2001) sources
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