In a period of student loan scandals and U.S. financial market instability impacting on the cost and availability of student loans, this paper looks at alternative models of higher education funding. In this context, it also considers the level of financial support that the government should provide to higher education.

An overview of several countries' experiences in financing private elementary and secondary education is provided in this paper. The first section presents some general observations about government finance of private schools. These observations are drawn from experience in Australia, Canada, the Federal Republic of Germany, and the Netherlands.…