Philanthropic higher education financing: Solution to rising cost of higher education
As the financial burden of higher education continues to grow, it increasingly limits access for many students, especially students from low-and middle-income families.
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Many potential students are forced to ignore their educational aspirations due to their inability to fulfil the associated financial obligations. This exacerbates poverty and existing inequalities in Ghana, where access to education is already unevenly distributed.
For those who do manage to enrol, the high cost of education often means taking on substantial debt to finance their studies which becomes a burden and can delay other important life milestones such as starting a family or purchasing a home.
The 2023 Open Doors report shows a significant 31.6 per cent increase in the number of Ghanaian students studying in the United States compared to 2022. Most of these talents do not return to Ghana after studying, resulting in a loss of valuable human capital which affects the country’s economic development.
Philanthropic higher education financing offers a more flexible and sustainable approach to financing higher education.
Through donations, alumni contributions and endowments, higher education institutions can generate revenue that has limited political control and directly aligns with their mission and goals.
This positions higher education institutions to offer graduate assistantships and scholarships to deserving students, invest in cutting-edge research, attract top-tier faculty and develop state-of-the-art facilities.
Philanthropic higher education financing also promotes the autonomy of higher educational institutions allowing them to be innovative.
Philanthropic higher education financing fosters a sense of community and shared purpose among alumni, donors and the institution, reinforcing a culture of philanthropy and lifelong engagement.
This creates a sustainable cycle where successful graduates support the next generation of students, making education affordable and accessible.
Justice Arthur,
Assistant Director of Advancement,
Northern Illinois University,
DeKalb, IL 60115, USA.
E-mail: [email protected]