A Simulation of an Income Contingent Tuition Scheme in a Transition Economy
The paper takes advantage of exceptionally rich longitudinal data on the universe of labor force participants in Slovenia and simulates the working of an income contingent loan scheme that seeks to recover part of schooling costs. The simulations show that under the base variant (where the target co...
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| Format: | Journal Article |
| Language: | EN |
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2012
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| Online Access: | http://hdl.handle.net/10986/5377 |
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okr-10986-53772021-04-23T14:02:22Z A Simulation of an Income Contingent Tuition Scheme in a Transition Economy Vodopivec, M. The paper takes advantage of exceptionally rich longitudinal data on the universe of labor force participants in Slovenia and simulates the working of an income contingent loan scheme that seeks to recover part of schooling costs. The simulations show that under the base variant (where the target cost recovery rate is 20% and the contribution rate is 2%), 55% of individuals would have repaid their entire debt within 20 years; 19% of individuals still would not have repaid any of their debt after 20 years; and the "leakage" of the scheme due to uncollected debt would have been 13.5% of total lending. By piggybacking on existing administrative systems, implementation costs would be minimal, amounting to less than 0.5% of collected debt. 2012-03-30T07:32:32Z 2012-03-30T07:32:32Z 2009 Journal Article Higher Education 0018-1560 http://hdl.handle.net/10986/5377 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Slovenia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
EN |
| geographic_facet |
Slovenia |
| relation |
http://creativecommons.org/licenses/by-nc-nd/3.0/igo |
| description |
The paper takes advantage of exceptionally rich longitudinal data on the universe of labor force participants in Slovenia and simulates the working of an income contingent loan scheme that seeks to recover part of schooling costs. The simulations show that under the base variant (where the target cost recovery rate is 20% and the contribution rate is 2%), 55% of individuals would have repaid their entire debt within 20 years; 19% of individuals still would not have repaid any of their debt after 20 years; and the "leakage" of the scheme due to uncollected debt would have been 13.5% of total lending. By piggybacking on existing administrative systems, implementation costs would be minimal, amounting to less than 0.5% of collected debt. |
| format |
Journal Article |
| author |
Vodopivec, M. |
| spellingShingle |
Vodopivec, M. A Simulation of an Income Contingent Tuition Scheme in a Transition Economy |
| author_facet |
Vodopivec, M. |
| author_sort |
Vodopivec, M. |
| title |
A Simulation of an Income Contingent Tuition Scheme in a Transition Economy |
| title_short |
A Simulation of an Income Contingent Tuition Scheme in a Transition Economy |
| title_full |
A Simulation of an Income Contingent Tuition Scheme in a Transition Economy |
| title_fullStr |
A Simulation of an Income Contingent Tuition Scheme in a Transition Economy |
| title_full_unstemmed |
A Simulation of an Income Contingent Tuition Scheme in a Transition Economy |
| title_sort |
simulation of an income contingent tuition scheme in a transition economy |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/5377 |
| _version_ |
1764394835342524416 |