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The Effect of Student Loan Limits on University Enrolments

Author

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  • Neill, Christine

Abstract

Student loan programs are an important feature of post-secondary education systems around the world. However, there is little direct evidence on whether these programs are effective in increasing enrolments of credit constrained students. Unlike other countries, Canada has a system of student loans and grants that is based on combined provincial/federal jurisdiction, leading to policy differences over time between provinces. I exploit these differences to evaluate the effects of changes in maximum student loan limits on enrolments of young people. I find that although there is evidence that increasing nonrepayable assistance leads to increases in enrolments, loans appear to increase only the probability of youth living away from their parents’ house while studying.

Suggested Citation

  • Neill, Christine, 2009. "The Effect of Student Loan Limits on University Enrolments," CLSSRN working papers clsrn_admin-2009-11, Vancouver School of Economics, revised 02 Feb 2009.
    • Handle: RePEc:ubc:clssrn:clsrn_admin-2009-11
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    File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%204%20-%20Neill%20-%20Final.pdf
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    Citations

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    Cited by:

    1. Frenette, Marc, 2011. "Is Debt Relief as Good as Liquidity? The Impact of Prospective Student Debt on Post-Secondary Attendance among Low-Income Youth," CLSSRN working papers clsrn_admin-2011-7, Vancouver School of Economics, revised 29 Mar 2011.
    2. Fabiola Saavedra & Mónica Ospina, 2014. "Decisions about Postsecondary Education, their returns in Colombia," Documentos de Trabajo de Valor Público 12542, Universidad EAFIT.
    3. Azzolini, Davide & Martini, Alberto & Rettore, Enrico & Romano, Barbara & Schizzerotto, Antonio & Vergolini, Loris, 2018. "Testing a Social Innovation in Financial Aid for Low-Income Students: Experimental Evidence from Italy," IZA Discussion Papers 11625, Institute of Labor Economics (IZA).
    4. Paul Contoyannis & Martin Dooley, 2010. "The role of child health and economic status in educational, health, and labour market outcomes in young adulthood," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(1), pages 323-346, February.

    More about this item

    Keywords

    Post-Secondary Education; Student Loans; Credit Constraints;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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