Australian legislators abolished before tuition fees in 1973, students had benefited from in Australia long low tuition and large government subsidies. From the early 1980s, but given the nation’s growing budget challenges universities and an apparent lack of capacity increased as the demand for higher education. Politicians, aware of a growing budget deficit and a tough recession, hesitated increased funding to higher education to provide. The debate on how best to … Read more »

Australian legislators abolished before tuition fees in 1973, students had benefited from in Australia long low tuition and large government subsidies. From the early 1980s, but given the nation’s growing budget challenges universities and an apparent lack of capacity increased as the demand for higher education. Politicians, aware of a growing budget deficit and a tough recession, hesitated increased funding to higher education to provide. The debate over how best to finance Australian universities finally came to a head in the late 1980s, after the publication of the report of the Committee on Higher Education Funding (commonly known Wran Report). Although the Wran committee had considered several possible funding, it ultimately proposed a radical system in which students would pay tuition financed through income-contingent loans from the government. The Wran report proved to be of particular interest to the Australian Prime Minister Robert Hawke. The financial position of the state seemed to demand that education funding be outdated, but there was no consensus on the best way to do this. Could the Prime Minister convince his Australian Labor Party to leave the free education plank in its platform? And even if he could, how could he ensure that the Wran Committee was the right strategy and that its recommendations were to be practical? Would make more sense for an American model of full tuition for universities and federally guaranteed student loans? These were just some of the questions that confronted the Prime Minister when he pulled new approaches to funding, in universities in Australia.
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from
David A. Moss,
Stephanie Lo
Source: Harvard Business School
29 pages.
Release date: 07 December, 2010. Prod #: 711047-PDF-ENG
Financing Higher Education in Australia HBR case solution

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