Will markets foster higher education diversity?

One of the more curious claims made in submissions to the higher education review is that markets will drive homogenisation rather than diversity. In my submission (pdf), I identify four market design problems that I believe limit diversity:

* access of foreign-owned providers to the FEE-HELP loan scheme is made very difficult (I expand on this here)

* Commonwealth-supported places are not available to most private providers of higher education

* student contribution amount regulations means that all public universities have to operate at the bargain-basement end of the market (though the effect of this has been alleviated somewhat by international student fees)

* a rigid quota system of allocating student places limits the scope for disciplinary specialisation
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