Educational Financing

The education system is far from being perfect. Education financing, especially in higher education, is characterized by numerous challenges. The financing of education the system may be informed of government scholarships, fiscal stimuli and social facilities to the financially weak students. The financing aims at improving the access of higher education to students and also reducing the number of youngsters who do not participate in higher education learning (Paulsen, 2007). Financial factors affect the financing system are both direct and indirect costs. Direct costs are those that are obligatory that relate to books, study material among others while indirect cost result from the inability of one to have an income during the study period that does have a negative effect on the financing of higher education (Paulsen, 2007).

When planning for the finance questions such as who, when and how arises. This complicated the process because identifying who deserves over who the participation of teachers and parents. Teachers give the education performance of the student while the parent’s financial capability is assessed. Financial factors such as knowledge of social facilities and scholarships, subjective estimation, and chances to find a job have an effect on financing. Some of the students may be attracted to leave school and earn resulting to financial losses that are estimated when one starts studying (Paulsen, 2007).

Education financing ranges in many forms of financial support to the students such as government scholarships, nongovernmental scholarships, fellowships form of financing and Pell Grants. These forms of financing have increased substantially the number of higher education students seeking the financial support (Paulsen, 2007). This has resulted in large numbers of students pursuing their studies under the educational financing systems.

Reference

Paulsen, M. B. (2007). The Finance of Higher Education: Theory, Research, Policy & Practice. New York: Algora Pub.