Public Subsidies for Students in Private Tertiary Education

Abstract

Private training establishments are a growing sector in New Zealand tertiary education, although their students receive lower subsidies than do those at public institutions. The determination of public subsidies for private tertiary education students is complex and is based upon philosophical arguments, trends in demand and the capacity of private and public sectors. This issue has gained prominence in New Zealand since the release of the Government Green Paper on tertiary education last year, which suggested equal subsidies for students in private and public tertiary education. This paper reviews the general arguments and overseas examples in this area, before examining the New Zealand situation and outlining options for the future.