IDEAS home Printed from https://ideas.repec.org/p/col/000089/012854.html
   My bibliography  Save this paper

Credit for Low-Income Students and Access to and Academic Performance in Higher Education in Colombia: A Regression Discontinuity Approach

Author

Listed:
  • Tatiana Melguizo
  • Fabio Sanchez
  • Tatiana Velasco

Abstract

This study evaluates the impact of a national level subsidized loan program, ACCES, on a number of higher education outcomes (i.e., increase in enrollment rates, decrease in dropout rates, and increase in academic performance) of low-income students in Colombia. We use national level data along with a regression discontinuity design to estimate the impact of the program. The results confirm that the program was effective in terms of increasing the potential number of low-income students at the margin who would have enrolled in college, decreasing the number of students who dropped out, and increasing their academic outcomes.

Suggested Citation

  • Tatiana Melguizo & Fabio Sanchez & Tatiana Velasco, 2015. "Credit for Low-Income Students and Access to and Academic Performance in Higher Education in Colombia: A Regression Discontinuity Approach," Documentos CEDE 12854, Universidad de los Andes, Facultad de Economía, CEDE.
  • Handle: RePEc:col:000089:012854
    as

    Download full text from publisher

    File URL: https://repositorio.uniandes.edu.co/bitstream/handle/1992/8567/dcede2015-18.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rong Chen & Stephen L. DesJardins, 2010. "Investigating the Impact of Financial Aid on Student Dropout Risks: Racial and Ethnic Differences," The Journal of Higher Education, Taylor & Francis Journals, vol. 81(2), pages 179-208, March.
    2. Gabrielle Fack & Julien Grenet, 2015. "Improving College Access and Success for Low-Income Students: Evidence from a Large Need-Based Grant Program," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 1-34, April.
    3. Jimenez, Emmanuel & Tan, Jee-Peng, 1987. "Selecting the brightest for post secondary education in Colombia: The impact on equity," Economics of Education Review, Elsevier, vol. 6(2), pages 129-135, April.
    4. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    5. Luis Fernando Gamboa & Paul Andrés Rodríguez-Lesmes, 2018. "Subjective Earnings and Academic Expectations of Tertiary Education in Colombia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 36(86), pages 159-177, June.
    6. Ralph Stinebrickner & Todd Stinebrickner, 2008. "The Effect of Credit Constraints on the College Drop-Out Decision: A Direct Approach Using a New Panel Study," American Economic Review, American Economic Association, vol. 98(5), pages 2163-2184, December.
    7. Terry Long, B.Bridget, 2004. "How have college decisions changed over time? An application of the conditional logistic choice model," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 271-296.
    8. Donald E. Heller, 1997. "Student Price Response in Higher Education," The Journal of Higher Education, Taylor & Francis Journals, vol. 68(6), pages 624-659, November.
    9. Pedro Cerdán-Infantes & Andreas Blom, 2007. "Colombia - Assisting Talented Students from Low-income Families Attend Tertiary Education," World Bank Publications - Reports 10303, The World Bank Group.
    10. Philip Oreopoulos & Daniel Lang & Joshua Angrist, 2009. "Incentives and Services for College Achievement: Evidence from a Randomized Trial," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 136-163, January.
    11. repec:mpr:mprres:4632 is not listed on IDEAS
    12. Stephen L. DesJardins & Dennis A. Ahlburg & Brian P. McCall, 2006. "An Integrated Model of Application, Admission, Enrollment, and Financial Aid," The Journal of Higher Education, Taylor & Francis Journals, vol. 77(3), pages 381-429, May.
    13. Phillip B. Levine & David J. Zimmerman, 2010. "Introduction to "Targeting Investments in Children: Fighting Poverty When Resources are Limited"," NBER Chapters, in: Targeting Investments in Children: Fighting Poverty When Resources Are Limited, pages 3-11, National Bureau of Economic Research, Inc.
    14. Christopher Avery & Caroline Minter Hoxby, 2004. "Do and Should Financial Aid Packages Affect Students' College Choices?," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 239-302, National Bureau of Economic Research, Inc.
    15. Susan M. Dynarski, 2003. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," American Economic Review, American Economic Association, vol. 93(1), pages 279-288, March.
    16. Levine, Phillip B. & Zimmerman, David J. (ed.), 2010. "Targeting Investments in Children," National Bureau of Economic Research Books, University of Chicago Press, number 9780226475813, September.
    17. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    18. Joshua Angrist & David Autor & Sally Hudson & Amanda Pallais, 2014. "Leveling Up: Early Results from a Randomized Evaluation of Post-Secondary Aid," NBER Working Papers 20800, National Bureau of Economic Research, Inc.
    19. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(3), pages 933-959.
    20. Felipe Barrera-Osorio & Marianne Bertrand & Leigh L. Linden & Francisco Perez-Calle, 2011. "Improving the Design of Conditional Transfer Programs: Evidence from a Randomized Education Experiment in Colombia," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 167-195, April.
    21. DesJardins, S. L. & Ahlburg, D. A. & McCall, B. P., 1999. "An event history model of student departure," Economics of Education Review, Elsevier, vol. 18(3), pages 375-390, June.
    22. Shen, Hua & Ziderman, Adrian, 2008. "Student Loans Repayment and Recovery: International Comparisons," IZA Discussion Papers 3588, Institute of Labor Economics (IZA).
    23. Hans de Wit & Isabel Cristina Jaramillo & Jocelyne Gacel-Ávila & Jane Knight, 2005. "Higher Education in Latin America : The International Dimension," World Bank Publications - Books, The World Bank Group, number 7428.
    24. Susan Dynarski, 2008. "Building the Stock of College-Educated Labor," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 576-610.
    25. Wilbert van der Klaauw, 2002. "Estimating the Effect of Financial Aid Offers on College Enrollment: A Regression-Discontinuity Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1249-1287, November.
    26. Caroline M. Hoxby, 2004. "College Choices: The Economics of Where to Go, When to Go, and How to Pay For It," NBER Books, National Bureau of Economic Research, Inc, number hoxb04-1.
    27. OECD & World Bank, 2012. "Tertiary Education in Colombia," World Bank Publications - Books, The World Bank Group, number 27434.
    28. Susan Dynarski, 2002. "The Behavioral and Distributional Implications of Aid for College," American Economic Review, American Economic Association, vol. 92(2), pages 279-285, May.
    29. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    30. Judith Scott-Clayton, 2011. "On Money and Motivation: A Quasi-Experimental Analysis of Financial Incentives for College Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 46(3), pages 614-646.
    31. repec:hal:pseose:halshs-01155638 is not listed on IDEAS
    32. Benjamin L. Castleman & Bridget Terry Long, 2016. "Looking beyond Enrollment: The Causal Effect of Need-Based Grants on College Access, Persistence, and Graduation," Journal of Labor Economics, University of Chicago Press, vol. 34(4), pages 1023-1073.
    33. World Bank, 2003. "Tertiary Education in Colombia : Paving the Way for Reform," World Bank Publications - Books, The World Bank Group, number 15135.
    34. Christopher M. Cornwell & Kyung Hee Lee & David B. Mustard, 2005. "Student Responses to Merit Retention Rules," HEW 0501001, University Library of Munich, Germany.
    35. Sigal Alon, 2011. "Who Benefits Most from Financial Aid? The Heterogeneous Effect of Need‐Based Grants on Students' College Persistence," Social Science Quarterly, Southwestern Social Science Association, vol. 92(3), pages 807-829, September.
    36. Kane, Thomas J, 1994. "College Entry by Blacks since 1970: The Role of College Costs, Family Background, and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 878-911, October.
    37. Peter Z. Schochet, "undated". "Statistical Power for Random Assignment Evaluations of Education Programs," Mathematica Policy Research Reports 6749d31ad72d4acf988f7dce5, Mathematica Policy Research.
    38. Christopher M. Cornwell & Kyung Hee Lee & David B. Mustard, 2005. "Student Responses to Merit Scholarship Retention Rules," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 895-917.
    39. Eric P. Bettinger & Bridget Terry Long & Philip Oreopoulos & Lisa Sanbonmatsu, 2012. "The Role of Application Assistance and Information in College Decisions: Results from the H&R Block Fafsa Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(3), pages 1205-1242.
    40. Caroline Minter Hoxby, 2004. "Introduction to "College Choices: The Economics of Where to Go, When to Go, and How to Pay For It"," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 1-12, National Bureau of Economic Research, Inc.
    41. Singell, Larry Jr., 2004. "Come and stay a while: does financial aid effect retention conditioned on enrollment at a large public university?," Economics of Education Review, Elsevier, vol. 23(5), pages 459-471, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Charles T. Clotfelter & Steven W. Hemelt & Helen F. Ladd, 2018. "Multifaceted Aid For Low‐Income Students And College Outcomes: Evidence From North Carolina," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 278-303, January.
    2. Gabrielle Fack & Julien Grenet, 2015. "Improving College Access and Success for Low-Income Students: Evidence from a Large Need-Based Grant Program," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 1-34, April.
    3. Benjamin M. Marx & Lesley J. Turner, 2015. "Borrowing Trouble? Student Loans, the Cost of Borrowing, and Implications for the Effectiveness of Need-Based Grant Aid," NBER Working Papers 20850, National Bureau of Economic Research, Inc.
    4. Lauren Schudde & Judith Scott-Clayton, 2016. "Pell Grants as Performance-Based Scholarships? An Examination of Satisfactory Academic Progress Requirements in the Nation’s Largest Need-Based Aid Program," Research in Higher Education, Springer;Association for Institutional Research, vol. 57(8), pages 943-967, December.
    5. Welch, Jilleah G., 2014. "HOPE for community college students: The impact of merit aid on persistence, graduation, and earnings," Economics of Education Review, Elsevier, vol. 43(C), pages 1-20.
    6. Michael S. Kofoed, 2017. "To Apply or Not to Apply: FAFSA Completion and Financial Aid Gaps," Research in Higher Education, Springer;Association for Institutional Research, vol. 58(1), pages 1-39, February.
    7. Bruce, Donald J. & Carruthers, Celeste K., 2014. "Jackpot? The impact of lottery scholarships on enrollment in Tennessee," Journal of Urban Economics, Elsevier, vol. 81(C), pages 30-44.
    8. Huang, Wei & Li, Fan & Liao, Xiaowei & Hu, Pingping, 2018. "More money, better performance? The effects of student loans and need-based grants in China's higher education," China Economic Review, Elsevier, vol. 51(C), pages 208-227.
    9. Celeste K. Carruthers & Jilleah G. Welch, 2015. "Not Whether, but Where? Pell Grants and College Choices," Working Papers 2015-04, University of Tennessee, Department of Economics, revised 28 Sep 2015.
    10. Dylan Conger & Lesley J. Turner, 2015. "The Impact of Tuition Increases on Undocumented College Students' Attainment," NBER Working Papers 21135, National Bureau of Economic Research, Inc.
    11. Jeffrey T. Denning & Benjamin M. Marx & Lesley J. Turner, 2019. "ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare," American Economic Journal: Applied Economics, American Economic Association, vol. 11(3), pages 193-224, July.
    12. Vivian Yuen Ting Liu, 2020. "Is School Out for the Summer? The Impact of Year-Round Pell Grants on Academic and Employment Outcomes of Community College Students," Education Finance and Policy, MIT Press, vol. 15(2), pages 241-269, Spring.
    13. Veronica Rattini, 2022. "The Effects of Financial Aid on Graduation and Labor Market Outcomes: New Evidence from Matched Education-Labor Data," CESifo Working Paper Series 10010, CESifo.
    14. Carruthers, Celeste K. & Welch, Jilleah G., 2019. "Not whether, but where? Pell grants and college choices," Journal of Public Economics, Elsevier, vol. 172(C), pages 1-19.
    15. Conger, Dylan & Turner, Lesley J., 2017. "The effect of price shocks on undocumented students' college attainment and completion," Journal of Public Economics, Elsevier, vol. 148(C), pages 92-114.
    16. Scott Carrell & Bruce Sacerdote, 2017. "Why Do College-Going Interventions Work?," American Economic Journal: Applied Economics, American Economic Association, vol. 9(3), pages 124-151, July.
    17. Michael S. Kofoed, 2022. "Pell Grants and Labor Supply: Evidence from a Regression Kink," Upjohn Working Papers 22-363, W.E. Upjohn Institute for Employment Research.
    18. Eric Bettinger & Oded Gurantz & Laura Kawano & Bruce Sacerdote, 2016. "The Long Run Impacts of Merit Aid: Evidence from California’s Cal Grant," NBER Working Papers 22347, National Bureau of Economic Research, Inc.
    19. Christopher Erwin & Melissa Binder & Cynthia Miller & Kate Krause, 2020. "Performance-based aid, enhanced advising, and the income gap in college graduation: Evidence from a randomized controlled trial," Working Papers 2020-06, Auckland University of Technology, Department of Economics.
    20. Lindsay C. Page & Judith Scott-Clayton, 2015. "Improving College Access in the United States: Barriers and Policy Responses," NBER Working Papers 21781, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Higher Education; Credit; Access; Academic Performance; ACCES;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000089:012854. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Universidad De Los Andes-Cede (email available below). General contact details of provider: https://edirc.repec.org/data/ceandco.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.