Financial Strategic Decisions making in Higher Education: funding higher education mechanism

The present study aimed to investigate the relationship between the One of the most important strategic decisions in higher education is funding mechanisms which are studied in this article. To achieve this, first the most important financing systems were extracted. Then, we compared the efficiency, equity of access, level of access and private expansion effects of these mechanisms. In order to choose between one system or another, related articles that compare funding mechanisms have been analyzed. Having assessed different modes, we come to this conclusion that the best funding approach can be “market oriented funding” and in this framework “income contingent loan” and “graduate tax” can better provide the objectives of higher education development such as increasing access, enhance equity in access, improving internal and external efficiency and development of private sector.