Presentation by Donald E. Heller, Director, Center for the Study of Higher Education, The Pennsylvania State University

1. The Guardian
The F t
Th Future of Hi h Education
f Higher Ed ti
London
11 March 2010
International Perspectives on
o sp so
Funding Structures
Donald E. Heller

2. International trends in higher education
Massification
Shift from public to private sources of funding
Focus on quality assurance and the role of
higher education in serving society and the
economy
© 2010, Donald E. Heller 2

3. Tertiary attainment rates
Population that has attained at least tertiary education (2007)
Percentage, by age group
%
70
55‐64 year‐old 25‐34 year‐old
60
50
40
30
20
10
0
Israel
Netherlands
Korea
Japan
Denmark
New Zealand
France
Belgium
Australia
Spain
Switzerland
Germany
Greece
Hungary
Austria
Turkey
Brazil
an Federation1
United States
Sweden
Mexico
Italy
Slovak Republic
Czech Republic
Chile2
Norway
Luxembourg
OECD average
Iceland
Poland
Portugal
Ireland
Estonia
Canada
Finland
Slovenia
United Kingdom
Russia
S
U
1. Year of reference 2002 2. Year of reference 2004
Countries are ranked in descending order of the percentage of 25-34 year-olds who have attained at least tertiary education.
Source: OECD. Table A1.3a. See Annex 3 for notes (www.oecd.org/edu/eag2009).
© 2010, Donald E. Heller 3

4. 0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Australia
© 2010, Donald E. Heller
Austria
Belgium
Canada
Czech Republic
h
Denmark
Finland
OECD Average
Hungary
Iceland
Ireland
Japan
Ne
etherlands
New Zealand
w
International students
Norway
Slovak Republic
k
Spain
Sweden
Proportion of international students in tertiary education, 2007
Sw
witzerland
United Kingdom
Source: OECD Table C2.1
ted
Unit States
4

5. 0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
© 2010, Donald E. Heller
Australia
Austria
Belgium
Canada
Czech Republic
h
Denmark
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Japan
Korea
Mexico
Ne
etherlands
New Zealand
w
Norway
1995
Poland
Portugal
Slovak Republic
k
2000
Spain
Tertiary education spending as % of GDP
Sweden
Sw
witzerland
Source: OECD Table B2.1
2006
Turkey
United Kingdom
Unit States
ted
O
OECD ave.
5

6. 0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
© 2010, Donald E. Heller
A
Australia
Austria
Belgium
Canada
Czech Republic
R
D
Denmark
Finland
France
G
Germany
H
Hungary
Iceland
Ireland
Italy
Japan
Korea
Mexico
Neth
herlands
New Zealand
Poland
Portugal
Private
R
Slovak Republic
Spain
Public
Sweden
Public and private investment in tertiary education
United Kingdom
K
Public and private expenditures on tertiary education as % of GDP, 2006
Source: OECD Table B2.4
United States
d
OE
ECD ave.
6

7. Spending on tertiary education
Tertiary education spending per student, 2006 ($US PPP)
$30,000
$25,000
$20,000
OECD Average
$15,000
$10,000
$5,000
$0
Korea
therlands
Denmark
Finland
Germany
Ireland
Mexico
Sweden
Czech Republic
France
Iceland
Norway
Slovak Republic
Australia
Austria
Canada*
Hungary
Japan
Spain
United Kingdom
Belgium
Italy
Poland
Portugal
witzerland
Unite States
New Zealand
ed
G
D
Net
w
Sw
© 2010, Donald E. Heller *Author’s estimate from StatCan, OECD Source: OECD Table B1.1a 7

8. Relationship between spending and attainment
60
Canada
Japan
p
% with tertiary credential, 200 (age 25-34)
50
Ireland
Norway
07
France Australia
40
0
Sweden
Denmark United States
Spain Finland
United Kingdom Netherlands
Switzerland
30
Poland
3
y
OECD ave.
attainment
Germany
Hungary
Portugal
20
r = .73
Italy Mexico Austria
Slovak Republic
Czech Republic
Turkey OECD ave.
spending
10
0.5 1.0 1.5 2.0 2.5
Tertiary spending as % of GDP, 1995
© 2010, Donald E. Heller Source: OECD Tables B2.1 & A1.3a 8

9. Tuition charges
Average university tuition fee charges, 2006 ($US PPP)
$25,000
$25 000
Public Private $20,517
$20,000
$15,000
$10,000 $ ,
$8,519
$7,902
$7 902
$6,695
$5,666
$4,279$4,717 $4,694
$5,000 $4,035 $3,705 $3,866
$2,765
$1,707
$825 $1,123 $1,180 $844
$0 $0 $0 $0 $0
$0 $0
$0
Korea
Canada
Iceland
Australia
Austria
Denmark
Finland
Japan
Netherlands
Ireland
Italy
New Zealand
Spain
Portugal
Sweden
United Kingdom
Unite States
Czech Republic
ed
A
K
D
© 2010, Donald E. Heller Source: OECD Table B5.1a 9

10. Public funding for higher education in three countries
U.S. England Canada
Public/private funding mix 34%/66% 65%/35% (UK) 53%/47%
(2006)
Sources of public funding 51 1 11
Fee-setting authority
F tti th it Mixed
Mi d Public
P bli Public
P bli
Loan providers Multiple 1 1+
Loan type Mortgage ICR Mortgage
Federal/state/ Federal/ Federal/
Grants institutional institutional Provincial
institutional
The challenges of affecting access and attainment through public policy levers
are quite different in the three countries
© 2010, Donald E. Heller 10

11. Challenges
Continuing demands for public support of higher education
Expansion – access and completion
Maintaining (or increasing) quality
The role of private funding
Increasing tuition fees
Private, philanthropic support
Business support
Ensuring equity
Financial, academic,
Financial academic and cultural barriers
Managing the migration of students
Spaces
Revenue implications
Quality
© 2010, Donald E. Heller 11