A comparison of the efficiency and equity implications of university loan programs in the United States and in Kenya

As the countries of the world become increasingly interdependent, there is growing awareness among policy makers that governments in both developed and developing countries face common questions of social policy. The financing of education is no exception.1 The major issues faced by governments with regard to financing of higher education include: who should attend college; who should pay the cost of higher education; and what the appropriate contribution of the family, the student and the public should be in the financing of education. In other words, to what extent should taxpayers subsidize higher education? How can higher education opportunities be equalized for low-income and other disadvantaged groups in society?2 Although it is not possible or even appropriate to transfer directly models from the higher education system of one country to another, cross-national comparisons can enlighten and inform policy analysis. In this paper, the operation of student loan schemes in the United States is compared to that of similar programs in Kenya. In the discussion that follows, emphasis will be placed on determining the efficiency and equity implications of student loan schemes in these two countries.

A comparison of the efficiency and equity implications of university loan programs in the United States and in Kenya Academic Article