Chile student loan bill would alter education finance

Significance Though far short of an election promise of a universal write-off, the bill would fundamentally change how higher education is financed and increase state control over even private universities and institutes. The government probably hoped that the announcement would have a favourable impact on the results of October’s regional and municipal elections, but this apparently was not the case. Impacts Controversially, the bill would continue to focus resources on higher education, not potentially greater social returns in early education. Critics argue that, by increasing income tax, the proposed system could encourage labour market informality. Although reducing the financial burden on families, the bill could undermine university quality and, particularly, research and development.