STUDY THE FUNDING MECHANISMS OF HIGHER EDUCATION

Abstract

One of the most important strategic decisions in higher education is funding mechanism which is studied in this article. To achieve this, first the most important financing systems were extracted. Then, these mechanisms were evaluated base on some criteria such as the efficiency, equity, level of access and private sector's expansion. In order to compare different mechanism, qualitative meta-analysis was utilized and related articles and researches have been analyzed. Having assessed different modes, we come to this conclusion that the best funding approach can be "market oriented funding" and in this framework "income contingent loan" and "graduate tax" can better provide the objectives of higher education development such as increasing access, enhance equity in access, improving internal and external efficiency and development of private sector.