Financing Higher Education: Proposal For Higher Education Model in Turkey

Higher education is a mixed commodity. considering its attribute, it is a service benefiting its users directly and society indirectly. therefore it is necessary that higher education be catered continuously. in this context, higher education institutions should prompt the dynamics of societal development and lead the society toward better future. one of fundamental task for universities is to provide positive externalities for the entire society. however, universities often face important financial difficulties to extent the externalities they provide. in recent years alternative resources also are employed in financing higher education. for instance it is universally accepted application that some of the costs of higher education are accrued to the direct beneficiaries or the students. in some countries however higher education is solely funded by public resources because higher education in these countries is considered as public good. however in the recent years, a widespread belief suggests that public resources are not fit for efficient use, therefore alternative means of higher education finance are being explored. one such means appears to be an income- contingent system or student borrowing system. this method eases the burden of public finance and allows for students to assume a partial cost of higher education.