Affordability of private tertiary education: a Malaysian study

Purpose ‐ The purpose of this paper is to examine the affordability of private tertiary education for households in Malaysia. Design/methodology/approach ‐ The relevant literature is reviewed to provide an overview of the affordability of private tertiary education. Data are obtained randomly from a private university in Malaysia and the results are analyzed using the one-sample t-test and one-way ANOVA. Findings ‐ The proxy of affordability, which is the average household income, reveals the per capita average is more than three times the national average, which points out the non-affordability of students from low and average earning households to afford private tertiary education in Malaysia. Financial assistance of students at the tertiary level is insufficient and may warrant further policy and administrative improvements to reach deserving students. There is also difference in income and hence affordability between urban-rural households, a perspective that demands changes in the current income distribution policies. In order to address the issues highlighted in this study, salient suggestions have been proposed. Originality/value ‐ This paper reinforces the need to address the issue of affordability of tertiary education and its significant importance, especially to developing countries.