IMPACT OF SUBSIDY REMOVAL ON EDUCATION
Governments frequently employ subsidies to boost economic activity in a variety of fields, including education. Eliminating subsidies, however, has the potential to significantly alter the educational landscape, including access, quality, and price. By surveying previous research on the topic, this literature review hopes to assess the educational consequences of eliminating subsidies.
For marginalized communities, financial aid plays a key role in making higher education more accessible. For instance, subsidies can assist bring the price of schooling down to a level that’s more manageable for families on a tight budget. However, people who are already at a disadvantage may have their access to education diminished if subsidies are eliminated. This is due to the fact that if tuition keeps rising, some families may be unable to afford it, resulting in a drop in student enrolment.
Education quality may also be affected by subsidies. Subsidies can be used to upgrade infrastructure, such school buildings and supplies. In addition to enhancing learning outcomes, subsidies can be utilized to recruit and retain highly skilled educators. However, particularly in low-income communities, the elimination of subsidies might result in a decline in educational quality. This is because schools may lack the funds necessary to properly maintain and upgrade their facilities and teaching methods.
Education costs can be affected by subsidies as well. Subsidies, for instance, might lessen the financial burden of things like school fees and textbooks. Subsidies can also help families with lower incomes by covering some of the costs of a child’s education. A rise in tuition costs is especially problematic for low-income families if subsidies are no longer available. This may cause fewer students to enroll and more students to drop out.
In sum, the loss of subsidies can have serious consequences for the educational system, especially in terms of access, quality, and cost. The elimination of subsidies may have varying effects on schools depending on a number of variables, such as the extent to which they are supported by the government, the accessibility of alternative financing sources, and the prevailing economic and social conditions. That’s why it’s crucial to weigh the pros and cons of eliminating subsidies before making any changes to the educational system.
