IOE - Faculty of Education and Society


Understanding the problems with mortgage-type student loans; the econometrics of repayment burden calculations

02 June 2016, 12:30 pm–2:00 pm


Event Information

Open to



Room 901, UCL Institute of Education, 20 Bedford Way, London WC1H 0AL

Programme 2: Socio-economic implications of high participation higher education


Bruce Chapman


There are critical differences between mortgage-type and income contingent student loan policies. The seminar explains that the major issue relates to the fact that the former are paid on the basis of time, while the latter depend on a borrower's capacity to pay.

This raises the important role of repayment burdens, the proportions of a debtor's income that is needed to repay a student loan. Using econometric techniques it is shown that repayment burdens with mortgage loans for low income graduates in all countries examined are typically very high  - as much as 80 per cent for those in the lowest parts of the income distribution.

The implications for loan choice are stark, highlighting the benefits of income contingent loans so long as they can be made to be administratively feasible.

About the presenter:

Bruce Chapman is a Professor of Economics in the Research School of Social Sciences at the Australian National University. He has a PhD from Yale University and is a labour and education economist having published over a hundred articles in the areas of training, wage determination, higher education financing, unemployment, labour market program evaluation, the economics of crime and schooling. He has had extensive direct policy experience, including the motivation and design of the Higher Education Contribution Scheme in 1988, as a senior economic advertiser to Prime Minister Paul Keating from 1994-1996, and as a consultant to the OECD, the World Bank, and the governments of around 10 countries (mostly in the area of university financing).

Please join us for this lunchtime seminar hosted by the Centre for Global Higher Education (CGHE), UCL Institute of Education.

This seminar is free and open to the public. No advance booking is required.

Please note that the Chatham House Rule applies to some CGHE seminars - email Anna Phillips:
for more information.

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