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	<title>Comments on: What is the difference between a voucher and a scholarship?</title>
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	<link>http://andrewnorton.info/2007/06/what-is-the-difference-between-a-voucher-and-a-scholarship/</link>
	<description>Observations from Carlton's Lone Classical Liberal</description>
	<pubDate>Fri, 05 Dec 2008 02:59:22 +0000</pubDate>
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		<title>By: Club Troppo &#187; Friday's Missing Link on Friday!</title>
		<link>http://andrewnorton.info/2007/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7558</link>
		<dc:creator>Club Troppo &#187; Friday's Missing Link on Friday!</dc:creator>
		<pubDate>Fri, 15 Jun 2007 08:30:45 +0000</pubDate>
		<guid isPermaLink="false">http://andrewnorton.info/blog/2007/06/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7558</guid>
		<description>[...] Norton discusses a new quasi-voucher scheme for funding tertiary education, while both Norton and Jason Soon note an uncharacteristically silly [...]</description>
		<content:encoded><![CDATA[<p>[...] Norton discusses a new quasi-voucher scheme for funding tertiary education, while both Norton and Jason Soon note an uncharacteristically silly [...]</p>
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		<title>By: Stephen Hill</title>
		<link>http://andrewnorton.info/2007/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7543</link>
		<dc:creator>Stephen Hill</dc:creator>
		<pubDate>Sat, 09 Jun 2007 13:57:41 +0000</pubDate>
		<guid isPermaLink="false">http://andrewnorton.info/blog/2007/06/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7543</guid>
		<description>“We envisage that individuals wishing to undertake additional studies, beyond those supported through national scholarships, should have access on a fee-paying basis, with loan assistance available up to the cap of $80,000.”

From having a look at the pages referred, I'm not sure if the Go8 proposal would preclude further study, what I saw that the scholarship refreshed when a student changes course, if it refreshes when a student starts another course then 7 years (full-time) is a reasonable time in which to complete a degree - I noticed it factored in a longer scholarship for medicine and longer degrees, and something similar I hope would be applied to double degrees.

If it does refresh at the beginning a new course it isn't much different from status quo. The only problem I can see at the moment is that one isn't eligible for Austudy after completing a postgrad qualification, which automatically deters a lot of potential teachers from doing a DipEd, which could be the ideal qualification to offer some insurance for a graduate student considering entering the competitive field that is the academic job market.

Also I can see there being situations like Russell mentioned, what if a teacher wents to reskill to become a Maths or Science teacher, they could run into problems. If the 7-year learning entitlement is per course I don't have a problem with it, but I can see it in rare cases inhibiting some people from reskilling (although I believe at the moment universities are allowed to waive the 7 year requirement in some circumstances).

Also I can see the bureaucratic mess the 7 year entitlement can place on unis, as Andrew says it probably costs more to police than it saves in costs. I doubt "perpetual students" are really that much of problem (apart from graduate students, who have high GPAs to be eligible for further study). Which leads me to believe this is largely a myth, as I can see little incentive for many people to complete more than two degrees (How many people are financially in the position to complete three or four undergraduate degrees - that's nine to twelve years living on student allowance, OUCH!!!). Secondly, how many people would want to keep studying course after course without attempt to apply the skills they obtained in a market, other than a few academic types I think the numbers would be minute.</description>
		<content:encoded><![CDATA[<p>“We envisage that individuals wishing to undertake additional studies, beyond those supported through national scholarships, should have access on a fee-paying basis, with loan assistance available up to the cap of $80,000.”</p>
<p>From having a look at the pages referred, I&#8217;m not sure if the Go8 proposal would preclude further study, what I saw that the scholarship refreshed when a student changes course, if it refreshes when a student starts another course then 7 years (full-time) is a reasonable time in which to complete a degree - I noticed it factored in a longer scholarship for medicine and longer degrees, and something similar I hope would be applied to double degrees.</p>
<p>If it does refresh at the beginning a new course it isn&#8217;t much different from status quo. The only problem I can see at the moment is that one isn&#8217;t eligible for Austudy after completing a postgrad qualification, which automatically deters a lot of potential teachers from doing a DipEd, which could be the ideal qualification to offer some insurance for a graduate student considering entering the competitive field that is the academic job market.</p>
<p>Also I can see there being situations like Russell mentioned, what if a teacher wents to reskill to become a Maths or Science teacher, they could run into problems. If the 7-year learning entitlement is per course I don&#8217;t have a problem with it, but I can see it in rare cases inhibiting some people from reskilling (although I believe at the moment universities are allowed to waive the 7 year requirement in some circumstances).</p>
<p>Also I can see the bureaucratic mess the 7 year entitlement can place on unis, as Andrew says it probably costs more to police than it saves in costs. I doubt &#8220;perpetual students&#8221; are really that much of problem (apart from graduate students, who have high GPAs to be eligible for further study). Which leads me to believe this is largely a myth, as I can see little incentive for many people to complete more than two degrees (How many people are financially in the position to complete three or four undergraduate degrees - that&#8217;s nine to twelve years living on student allowance, OUCH!!!). Secondly, how many people would want to keep studying course after course without attempt to apply the skills they obtained in a market, other than a few academic types I think the numbers would be minute.</p>
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		<title>By: Stephen Hill</title>
		<link>http://andrewnorton.info/2007/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7557</link>
		<dc:creator>Stephen Hill</dc:creator>
		<pubDate>Sat, 09 Jun 2007 08:23:07 +0000</pubDate>
		<guid isPermaLink="false">http://andrewnorton.info/blog/2007/06/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7557</guid>
		<description>"Andrew Leigh’s research shows that teachers with postgrad qualifications don’t have better student outcomes than teachers without them, though there is always the possibility that they would be worse than average without them."

This was in regards to primary school teachers. I doubt it would be the case for secondary school teachers where a much greater mastery of subjects is required.</description>
		<content:encoded><![CDATA[<p>&#8220;Andrew Leigh’s research shows that teachers with postgrad qualifications don’t have better student outcomes than teachers without them, though there is always the possibility that they would be worse than average without them.&#8221;</p>
<p>This was in regards to primary school teachers. I doubt it would be the case for secondary school teachers where a much greater mastery of subjects is required.</p>
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		<title>By: Andrew Norton</title>
		<link>http://andrewnorton.info/2007/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7556</link>
		<dc:creator>Andrew Norton</dc:creator>
		<pubDate>Fri, 08 Jun 2007 22:06:02 +0000</pubDate>
		<guid isPermaLink="false">http://andrewnorton.info/blog/2007/06/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7556</guid>
		<description>Andrew Leigh's research shows that teachers with postgrad qualifications don't have better student outcomes than teachers without them, though there is always the possibility that they would be worse than average without them. I doubt many teachers or nurses ever pay full-price for their education, for the reason I mentioned above.

The Group of Eight proposal gives seven years of subsidies, enough for two undergrad degrees (with a handful of exceptions). There is a bit of a debate about whether there are sufficient 'perpetual students' to warrant the bureaucracy involved in keeping track of how much of their 7 years students have consumed, though I have no in-principle objection to the limit (which is the same as current policy).</description>
		<content:encoded><![CDATA[<p>Andrew Leigh&#8217;s research shows that teachers with postgrad qualifications don&#8217;t have better student outcomes than teachers without them, though there is always the possibility that they would be worse than average without them. I doubt many teachers or nurses ever pay full-price for their education, for the reason I mentioned above.</p>
<p>The Group of Eight proposal gives seven years of subsidies, enough for two undergrad degrees (with a handful of exceptions). There is a bit of a debate about whether there are sufficient &#8216;perpetual students&#8217; to warrant the bureaucracy involved in keeping track of how much of their 7 years students have consumed, though I have no in-principle objection to the limit (which is the same as current policy).</p>
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		<title>By: Russell</title>
		<link>http://andrewnorton.info/2007/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7550</link>
		<dc:creator>Russell</dc:creator>
		<pubDate>Fri, 08 Jun 2007 11:28:45 +0000</pubDate>
		<guid isPermaLink="false">http://andrewnorton.info/blog/2007/06/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7550</guid>
		<description>"Once people have the sunk cost (including the considerable opportunity cost) of having acquired the relevant skills, they are less likely to leave for another occupation even if their salary isn’t that flash, because they lack the credentials and/or experience to enter better-paid vocations. "

That's more or less the point I was making - and that it's a bad thing. Do you think it's OK, when we're told everybody should expect to have at least 3 different occupations/careers in their lives, to make further education so expensive - ie full-fee cost? This new proposal seems to give people just one shot at tertiary education.

Teachers, nurses etc who had the inclination would probably become better teachers and nurses by dipping in and out of continuing, part-time further education over their careers - something they won't do if it's so expensive.</description>
		<content:encoded><![CDATA[<p>&#8220;Once people have the sunk cost (including the considerable opportunity cost) of having acquired the relevant skills, they are less likely to leave for another occupation even if their salary isn’t that flash, because they lack the credentials and/or experience to enter better-paid vocations. &#8221;</p>
<p>That&#8217;s more or less the point I was making - and that it&#8217;s a bad thing. Do you think it&#8217;s OK, when we&#8217;re told everybody should expect to have at least 3 different occupations/careers in their lives, to make further education so expensive - ie full-fee cost? This new proposal seems to give people just one shot at tertiary education.</p>
<p>Teachers, nurses etc who had the inclination would probably become better teachers and nurses by dipping in and out of continuing, part-time further education over their careers - something they won&#8217;t do if it&#8217;s so expensive.</p>
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		<title>By: Andrew Norton</title>
		<link>http://andrewnorton.info/2007/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7549</link>
		<dc:creator>Andrew Norton</dc:creator>
		<pubDate>Fri, 08 Jun 2007 00:45:31 +0000</pubDate>
		<guid isPermaLink="false">http://andrewnorton.info/blog/2007/06/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7549</guid>
		<description>James - I'm not sure that this is 'picking winners', but more like the goverment buying a known product, such as teachers or nurses. From the state's perspective, it may be more efficient to use education subsidies to churn out lots of teachers and nurses than to significantly increase salaries to encourage more people to enter and stay in these professions.

Once people have the sunk cost (including the considerable opportunity cost) of having acquired the relevant skills, they are less likely to leave for another occupation even if their salary isn't that flash, because they lack the credentials and/or experience to enter better-paid vocations.

Your position seems to be that there is some kind of vague general public good from more graduates that would not be achieved without a subsidy. I seriously doubt that this is the case across all disciplines. If public money is to be spent, I want more evidence that some good will come of it.</description>
		<content:encoded><![CDATA[<p>James - I&#8217;m not sure that this is &#8216;picking winners&#8217;, but more like the goverment buying a known product, such as teachers or nurses. From the state&#8217;s perspective, it may be more efficient to use education subsidies to churn out lots of teachers and nurses than to significantly increase salaries to encourage more people to enter and stay in these professions.</p>
<p>Once people have the sunk cost (including the considerable opportunity cost) of having acquired the relevant skills, they are less likely to leave for another occupation even if their salary isn&#8217;t that flash, because they lack the credentials and/or experience to enter better-paid vocations.</p>
<p>Your position seems to be that there is some kind of vague general public good from more graduates that would not be achieved without a subsidy. I seriously doubt that this is the case across all disciplines. If public money is to be spent, I want more evidence that some good will come of it.</p>
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		<title>By: JamesP</title>
		<link>http://andrewnorton.info/2007/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7548</link>
		<dc:creator>JamesP</dc:creator>
		<pubDate>Fri, 08 Jun 2007 00:22:21 +0000</pubDate>
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		<description>Andrew I agree - a public subsidy for education is problematic, but a public subsidy where the government 'picks winners' is much worse. If you are going to have any subsidy at all, it should at least be consistent so as to avoid distortions in the market.</description>
		<content:encoded><![CDATA[<p>Andrew I agree - a public subsidy for education is problematic, but a public subsidy where the government &#8216;picks winners&#8217; is much worse. If you are going to have any subsidy at all, it should at least be consistent so as to avoid distortions in the market.</p>
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		<title>By: Russell</title>
		<link>http://andrewnorton.info/2007/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7547</link>
		<dc:creator>Russell</dc:creator>
		<pubDate>Thu, 07 Jun 2007 12:39:13 +0000</pubDate>
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		<description>I didn't like this bit of the proposal (at the bottom of page 46):

"We envisage that individuals wishing to undertake additional studies, beyond those supported through national scholarships, should have access on a fee-paying basis, with loan assistance available up to the cap of $80,000."

So if a teacher or librarian would like to add to their skills by enrolling, for example, in a language course, they would pay the whole full-fee amount, out of their not very large income. I would like to think that teachers (and librarians, and people in other professions too probably) could continue to study their whole professional lives, becoming better and better at what they do. You couldn't do it under this scheme. We in Australia have enough wealth to have free education, and that's what we should have.</description>
		<content:encoded><![CDATA[<p>I didn&#8217;t like this bit of the proposal (at the bottom of page 46):</p>
<p>&#8220;We envisage that individuals wishing to undertake additional studies, beyond those supported through national scholarships, should have access on a fee-paying basis, with loan assistance available up to the cap of $80,000.&#8221;</p>
<p>So if a teacher or librarian would like to add to their skills by enrolling, for example, in a language course, they would pay the whole full-fee amount, out of their not very large income. I would like to think that teachers (and librarians, and people in other professions too probably) could continue to study their whole professional lives, becoming better and better at what they do. You couldn&#8217;t do it under this scheme. We in Australia have enough wealth to have free education, and that&#8217;s what we should have.</p>
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		<title>By: Andrew Norton</title>
		<link>http://andrewnorton.info/2007/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7555</link>
		<dc:creator>Andrew Norton</dc:creator>
		<pubDate>Thu, 07 Jun 2007 08:26:11 +0000</pubDate>
		<guid isPermaLink="false">http://andrewnorton.info/blog/2007/06/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7555</guid>
		<description>James - But if is not the government's job to pick which areas of study need assistance, why do you think we need public subsidy (in whatever form - grants, vouchers, scholarships) at all?

I don't entirely agree the the Group of Eight have most to gain from a voucher system. So far as I know, none want to expand and I would not be surprised if most would rather be smaller (though they may prefer to diversify risk, and take fewer international and more domestic students).

Institutionally, the biggest winners are likely to be private higher education providers and perhaps places like RMIT, which have strong demand and are not concerned to protect their 'exclusive' nature.</description>
		<content:encoded><![CDATA[<p>James - But if is not the government&#8217;s job to pick which areas of study need assistance, why do you think we need public subsidy (in whatever form - grants, vouchers, scholarships) at all?</p>
<p>I don&#8217;t entirely agree the the Group of Eight have most to gain from a voucher system. So far as I know, none want to expand and I would not be surprised if most would rather be smaller (though they may prefer to diversify risk, and take fewer international and more domestic students).</p>
<p>Institutionally, the biggest winners are likely to be private higher education providers and perhaps places like RMIT, which have strong demand and are not concerned to protect their &#8216;exclusive&#8217; nature.</p>
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		<title>By: JamesP</title>
		<link>http://andrewnorton.info/2007/06/what-is-the-difference-between-a-voucher-and-a-scholarship/#comment-7554</link>
		<dc:creator>JamesP</dc:creator>
		<pubDate>Thu, 07 Jun 2007 08:08:21 +0000</pubDate>
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		<description>"I suspect in law and commerce there is no market failure at all and no vouchers are needed. In low-salary professions such as nursing or teaching some subsidy is probably necessary to keep the flow of workers going. -"

Shame Andrew! It's not the Government's job to pick which areas of study need assistance because of a lack of graduates, low salaries etc. If they have a flat voucher, and universities are allowed to charge top-up fees, low-demand courses (perhaps because of low salary after graduation) will have prices closest to the voucher value, and courses which have high graduate salaries will have higher demand and therefore charge the most top-up fees.

Regardless, it is a welcome development from the Universities - a big step from the kind of thinking that pervaded campuses just 5-10 years ago. We should remember though that this is the G8, who would benefit most from a voucher/scholarship scheme, and not a group which represents smaller universities, who are likely to oppose such moves. Politically, it's a step in the right direction - towards a comprehensive voucher system.</description>
		<content:encoded><![CDATA[<p>&#8220;I suspect in law and commerce there is no market failure at all and no vouchers are needed. In low-salary professions such as nursing or teaching some subsidy is probably necessary to keep the flow of workers going. -&#8221;</p>
<p>Shame Andrew! It&#8217;s not the Government&#8217;s job to pick which areas of study need assistance because of a lack of graduates, low salaries etc. If they have a flat voucher, and universities are allowed to charge top-up fees, low-demand courses (perhaps because of low salary after graduation) will have prices closest to the voucher value, and courses which have high graduate salaries will have higher demand and therefore charge the most top-up fees.</p>
<p>Regardless, it is a welcome development from the Universities - a big step from the kind of thinking that pervaded campuses just 5-10 years ago. We should remember though that this is the G8, who would benefit most from a voucher/scholarship scheme, and not a group which represents smaller universities, who are likely to oppose such moves. Politically, it&#8217;s a step in the right direction - towards a comprehensive voucher system.</p>
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