Abstract
[full article and abstract in English]
 This paper considers the mechanism of direct state support for students in European countries using loans and grants: their functions, forms, schemes, and conditions for provision. The peculiarities of the state preferential educational loan in Ukraine and the reasons for its curtailment since 2011 are determined. Nowadays, it is established that the main form of state support for Ukrainian students who receive higher education in public procurement comes with academic and social scholarships, whereas students who receive higher education under a contract of preferential state lending yet after the curtailment of the program are deprived of any state support. The necessity of restoring the program of preferential state lending for students and the directions of its improvement, such as the establishment of an interest rate on a loan based on the level of inflation, the establishment of a minimum amount of annual payments on a loan as a percentage of the minimum salary, the distribution of the risk of non-repayment of a loan between the state, the borrower and his parent, are all substantiated. This is done taking into account the financial capabilities of the Ukrainian state and the high levels of hidden income. We consider the establishment of conditions needed for the development of a system of commercial educational loans, by providing for the provision of a state guarantee on it and partial state subsidy of interest rates. We consider the areas of improvement of scholarship support of students and substantiate the necessity of introducing education at least for orphans, children deprived of parental care, and disabled children.
Highlights
Financial support for higher education cannot be limited to budget financing within the framework of a state-defined order
Due to its economic nature, lending to higher education has the features of a consumer loan with its targeted use and is characterized by the following peculiarities: it is provided at lower interest rates than other consumer loans, maintains a longer maturity, is distinguished by the possibility of using a preferential crediting period or paying only interest over a certain period, and it generally is provided by the state, which either itself carries out the role of the lender or is the guarantor of the financial transactions to the banks
Social scholarships that students have the right to: orphans and children deprived of parental care; persons who suffered as a result of the Chernobyl disaster; miners who have undergone undergraduate work for at least three years; other categories according to a specified list
Summary
Financial support for higher education cannot be limited to budget financing within the framework of a state-defined order. The main advantages of the private financing of higher education in comparison with state funding are described in contemporary economic literature. It is a more costeffective investment decision. The combination of public and private investment in higher education creates a competitive environment for the activities of educational institutions, which prompts changes in the educational process and promotes the quality of education (Масгрейв, Масгрейв 2009), while “the high level of state regulation of economic relations in education leads to irrational, in terms of society, decisions, strengthening the role of bureaucracy and ineffective spending resources” (Бьюкенен 1994)
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