Nicholas Barr (2002), 'Funding Higher Education: Policies for Access and Quality', House of Commons, Education and Skills Committee, Post-16 Student Support, Sixth Report of Session 2001-2, HC445, London: TSO, pp. Ev 19-35.
1. This paper puts forward a strategy for achieving two objectives in higher education - improved access and increased quality - about which there is unanimous agreement.
2. Diagnosis. The introduction of income-contingent repayments in 1998 was a genuine and enormous advance. However, two strategic problems remain. First, income-contingency is little understood, causing unnecessary
1 This paper draws on Barr (2001, Chs 10-14), and in part on work while a Visiting Scholar at the Fiscal Affairs Department at the IMF in Spring 2000. It also draws on collaboration on policy design with lain Crawford for more years than either of us care to contemplate, on advice on factual matters and administrative feasibility from Colin Ward and his team at the Student Loans Company, and on recent work by the three of us on a project advising the Hungarian government. An earlier version was presented at a meeting of the Parliamentary Universities Group.
2 Department of Economics, London School of Economics and Political Science, Houghton Street, London WC2A 2AE, UK.