There is a long-standing debate about whether development assistance should finance tertiary education. The debate largely revolves around impact of public subsidies for university students on income distribution and equity. Using a methodology developed by Jacob Mincer, economists are able to calculate the rates of return to an investment in education. Current estimates show that globally the private returns to tertiary education are around 15%. In large part, this reflects the high level of subsidies students receive in public universities.

For many, tertiary education has a very low cost and potential to lead to high wages, especially in developing countries. Since only a few students, primarily from wealthier households, can graduate the secondary level, universities largely exclude the poor.Most donors have decided that aid should not be spent on the tertiary level – and by the 1980s, most had curtailed or ended their support. — blog.adb.org/blogs