ASSESSMENT OF THE ADVANTAGES AND DISADVANTAGES IN FINANCING OF HIGHER EDUCATION THROUGH THE LENDING MECHANISM AND STUDENT GRANTS
Abstract. The article addresses the issue of assessing the advantages and disadvantages of financing higher education through the mechanism of lending and student grants. The foreign experience of lending for higher education, as well as the provision of grants, has been analyzed. It is concluded that the issue of tuition fees should be addressed differentially: in particular grants should be used as incentives for the most talented students; loans – as providing an opportunity to get higher education to anyone who is capable of it. Financial support for higher education cannot be limited to budget financing within the framework of a state order. Especially in the context of budget deficit it is expedient to diversify sources of financing, in particular through the mechanism of lending. At the same time, the reduction in the share of budget financing for higher education should not turn into uncontrolled commercialization of educational activities. Excessive commercialization of educational services can lead to the impossibility of obtaining higher education for a wide range of people. In our opinion, the development of mixed credit forms of payment for education is urgent, and the state must pursue an active stimulating policy. The actual lack of an effective lending mechanism for financing higher education in Ukraine is the actualization of the search for scientifically grounded ways of developing an education loan.
Keywords: higher education, budget financing, higher education lending, education grant.
JEL classification: H41, H52, I122, I123, I128.