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date: 21 August 2019

Abstract and Keywords

HE costs are driven upwards beginning at the institutional level with rising per-student costs. Rising unit costs are then magnified at the national or system level in most countries by surging enrolments. The result is the global reality of HE costs and revenue needs—especially in low and middle income countries with surging youth populations, ineffective taxation, and politically compelling alternative revenue needs—increasing annually at rates far exceeding the increase of costs generally or the ability of government revenue to increase commensurately. Governments typically seek solutions by increasing revenues from tuition and other fees and alternative forms of cost-sharing, which can raise intense political opposition, or by cutting costs which raises opposition from faculty, staff, and university leaders opposed to the loss of employment or radical changes in the traditional paradigms of instruction. The chapter then explores eight common misunderstandings about these cost dilemmas and discusses the advantages, disadvantages, and cultural bases of some of the conventional policy responses.

Keywords: higher education costs, faculty costs, technology substitution, cost-sharing, fee levels, fee implications, societal variation

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