Discriminatory Fee Structure
This method discriminates between courses and the economic condition of the family to which the student belongs. The cost of providing the education for each course is linked to the ability of the family to pay based on their income level. Thus,under this approach, those from the lower socio-economic strata are levied less burden and upper income groups are made to pay the highest.
The method is pointed out to be a good way for mobilising higher resources to the institutions without affecting the equity considerations in educational provision. It thus helps to reduce the perverse effects of ‘public subsidy system’.