If the government targets to expand higher education and lifelong learning are to be met, more peopl...
If the government targets to expand higher education and lifelong learning are to be met, more people will have to finance their own learning through savings, says a new report released by the Learning and Skills Research Centre.
According to the report there is little culture for saving for learning in the UK, but this will have to change if the UK government target, to get 50% of 18-30 year-olds into higher education by 2010, are to be met.
Drawing on examples from Denmark, Japan, New Zealand and the United States Saving for Learning: an international comparison shows how a savings culture in the UK which encourages individuals to take financial responsibility for their own learning could operate.
The four systems produce similar student participation rates and length of education yet they have different impacts on household finances.
Denmark has high taxes, low savings and state-subsidised free education. Japan is a country with low taxes, high education costs and high savings. The USA is characterised by low taxes, high education costs and low savings. While New Zealand has recently moved from low to high financial contributions for education.
The report reveals that people are less likely to save for learning if they can easily gain access to alternative sources of finance such as student loans. The report also demonstrates that tax incentives or breaks for education-related products have little impact on saving for learning, instead people are motivated by the cost of education.
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