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Cost Sharing in the Ethiopian Higher Education System: The Need, Implications and Future Directions

Cost Sharing in the Ethiopian Higher Education System: The Need, Implications and Future Directions,Teshome Yizengaw

Cost Sharing in the Ethiopian Higher Education System: The Need, Implications and Future Directions   (Citations: 1)
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Only about 1.5 percent of the age cohort is currently participating in higher education in Ethiopia. This is the major source of the critical shortage of educated and skilled human resources. The five-year (2005-2010) education sector development program (MOE, 2005) indicates that the higher education system in Ethiopia should be moving towards increasing participation to over 5 percent. However, covering the full tuition and food and room cost for such a small proportion of the age cohort from the taxpayers' money is neither feasible nor an appropriate and equitable distribution of resources. The increasing need for more public investment to expand access, for redress in terms of inequitable taxpayer subsidies and the desire to diversify revenue necessitates the introduction of cost sharing. Cost sharing mobilizes alternative non-governmental sources to supplement revenue, ensures equitable use of public resources, and facilitates the expansion of the sector opening up more opportunities. It also makes students responsible citizens and customers having a profound effect on improving the management and academic efficiency of higher education institutions. Ethiopia has chosen a modified model of the Australian type of student loan. This model, the graduate tax, is simpler and more manageable than other systems such as the mortgage type loan. The graduate tax scheme, as implemented in Ethiopia, ensures equitable access to students of any background, as there is no need to stipulate income of parents to arrive at the repayment amounts.
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