Financial expert on budget cuts

Compensation of unlucky students is not an investment in higher education

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Financial expert on budget cuts

The dust has settled after the State Opening of Parliament and the Parliamentary Debate on the Speech from the Throne. The ‘unprecedented’ and ‘historic’ cuts in higher education funding are set to continue, much to the dismay of administrators. Ben Jongbloed, a researcher at the University of Twente and an expert in higher education funding, outlines the opportunities and threats.

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Who is Ben Jongbloed?

Ben Jongbloed is associate professor in the Faculty of BMS at the Technical University of Twente and affiliated there with research institute CHEPS, the Center for Higher Education Policy Studies. Jongbloed is an expert on the financing of higher education.

How is this reflected in the Budget Memorandum?

‘Take, for example, the scrapping of the starting and incentive grants, which are said to be ineffective. That strikes me as a very premature conclusion, given that they were only recently introduced. Meanwhile, the government claims that sector funds – which are being retained – are effective instruments, but that remains to be seen. It’s mostly a policy based on gut feeling. Additionally, around 1.2 billion euros are being allocated to compensate “unlucky students”. That’s an enormous sum of money, and you have to question whether it’s a wise choice. Don’t get me wrong: I don’t want to take anything away from the students, but that compensation is not an investment in higher education.’

What are proven measures that would work?

‘Relatively little is known about effective educational interventions, but a big gain can be made by ensuring students are in the right place. This was also noted in the recent IBO report on efficient higher education. You could consider interventions like better academic counselling or rethinking the structure of the first year of a bachelor degree. The same IBO report also mentions the measure against the extended duration of study. However, I’m not sure if such a penalising incentive would work well. It could have a discouraging effect on prospective students, especially those from lower-income backgrounds. A colleague suggested that, instead of a penalty, it might be better to give institutions a bonus when students graduate within the agreed time – typically the nominal duration of the programme plus one year.’

The government is also cutting back by scrapping the starting and incentive grants and implementing the Balanced Internationalisation Act. What impact will this have on institutions?

‘The impact will be felt everywhere. Scrapping the starting grants will reduce career opportunities for assistant professors. Additionally, universities will struggle to achieve their ambitions. The Balanced Internationalisation Act will also affect finances and quality. International students bring dynamism to classrooms, and the financial effects should not be underestimated. Take, for example, the Psychology programme at our BMS faculty at UT, which is heavily reliant on international enrolment.’

What can an engineering university do to tackle these challenges?

‘Cooperation seems to be the key word here – not only within the university itself, but also externally with other institutions and businesses. The government wants to invest in businesses, so it makes sense to seek closer cooperation with them. Agreements can also be made with other universities on how we’ll allocate our teaching and research capacity in exchange for funding. In the Budget Memorandum, this is referred to as “capacity funding”. Above all, there are numerous opportunities for regional cooperation, particularly with Saxion University of Applied Sciences. For example, we could offer a joint first-year programme or work together on recruitment and academic counselling. These are opportunities that remain largely untapped.’

Cooperation is the motto, but universities also compete for the same students…

‘Competing is easier with allies than with enemies. The competition between universities for student enrolment and research funding will continue. This also drives academia forward. It comes down to profiling: can you distinguish your university from others? Think about offering job guarantees or providing student accommodation – interventions that could be tackled in partnership with businesses.’

Can you predict the landscape for universities in the coming years?

‘They need to take action and demonstrate their value. Universities were lulled into a false sense of security by the previous minister, Robbert Dijkgraaf, who played the role of Father Christmas and handed out gifts. Those days are over, and that will take some getting used to. But I’d say there’s no point in dwelling on disappointments. There are challenges, but also opportunities.’

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