When we design funding systems, we should take their impact on equity into account. In general, the goal of student aid is to ensure financial barriers do not prevent learners from pursuing and completing their degree. But, more specifically, disadvantaged students need more financial support and sometimes different kinds of aid. Governments must recognise the societal benefits of education beyond what is compulsory: for example, adults who attended higher education rely less on public welfare programmes and pay more taxes. Governments can also use student support to address skills shortages by giving more support to students enrolled in priority fields (e.g. teaching, nursing). In some countries, the tuition amount depends on the field of study.

OECD countries fall into three groups when it comes to tuition fees and direct financial support to college and university goers. In most countries where bachelor’s programmes are free, students get help with living expenses through both loans and scholarships or grants. In countries that charge tuition but not very much, less than half of students receive financial support, and when they do, it generally comes through grants or scholarships. Finally, there is more variation among countries with high tuition fees, but one common pattern is that students often rely on income-contingent loans. The way these loans are repaid depends on how much that student earns after graduating.