OECD (2000)

Public Subsidies to Households
Criteria for receiving public subsidies
Another aspect in which countries differ pertains to the criteria by which
students become eligible for public subsidies (see Table B3.3).
In the majority of the countries included in this indicator, eligibility for
receiving subsidies and the amount awarded are contingent on the student’s
family or household income. This shows that scholarships and grants in most
countries are intended to overcome social disparities and to widen access to
tertiary education for students from low-income families.
Evidence of progress in studies is a condition for retaining scholarships/
grants and loans in the majority of OECD countries (see Table B3.3). For
example, Denmark has encouraged students to progress more rapidly through
its “taximeter” funding mechanism. Two features of the “taximeter” provide
added incentive for progress towards a degree: 1) eligibility for payment of living
expenses is limited to twelve semesters of enrolment; and 2) institutions
receive appropriations on the basis of the number of “passes” in examinations.
Similar performance criteria are applied in Finland and Sweden, where part of
the public funding provided to institutions is based on the number of
completed degrees (especially advanced degrees).
Scholarships and grants
in most countries are
intended to support
students from
low-income families.
Evidence of progress
in studies is another
important criterion
for eligibility in many
countries.
B3
In other countries, such as Australia and Germany, the number of years for
which public subsidies are available is limited, depending on the theoretical
duration of studies. Finally, there remain a number of countries (Australia, the
Czech Republic, Mexico and the United Kingdom) in which public subsidies
are not linked to student progress.
In a few OECD countries, the age of the student is another criterion for
determining eligibility for subsidy. In the Czech Republic, Germany, the
Netherlands and Sweden students above a certain age are not eligible for
scholarships and grants. The age limits range from 26 in the Czech Republic
to 45 in Sweden. In France, students must be below 26 years old when applying
for the first time for a scholarship. However, the majority of countries do not
take age into account as a criterion for eligibility.
Age is a criterion for
eligibility in a minority
of countries.
DEFINITIONS
In the OECD survey on public subsidies, countries provided information
on public education subsidies to households for each level of education. The
following categories of public subsidies were included: i) grants/scholarships;
ii) public student loans; iii) family or child allowances contingent on student
status; iv) public subsidies in cash or kind specifically for housing, transportation,
medical expenses, books and supplies, social, recreational and other
purposes; v) interest-related subsidies for private loans; vi) private student
loans guaranteed by government; and vii) tax reductions. The survey also
collected descriptive information on the types of funding systems in the
different countries.
Data refer to
the financial year 1997
and are based on
the UOE data collection
on education statistics
administered in 1999
(for details see
Annex 3).
© OECD 2000
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