Graduates Should Contribute to the Cost of their Degree
Higher education creates benefits beyond those to the individual—benefits in terms of growth, the transmission of values, and the development of knowledge for its own sake—justifying continuing taxpayer subsidies. But there are also significant private benefits—in terms of higher earnings, more satisfying jobs and/or greater enjoyment of leisure time—making it efficient and equitable for graduates to bear some of the costs.
Though the previous paragraph is uncontentious as far as it goes, policy makers—especially in ministries of finance—are keen to know the answers to two questions
what is the efficient level of spending on education
what is the efficient level of taxpayer subsidy?