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The Effect of Student Loan Limits on University Enrolments

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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.

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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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Bibliographic Info

Paper provided by Vancouver School of Economics in its series CLSSRN working papers with number clsrn_admin-2009-11.

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Length: 41 pages
Date of creation: 02 Feb 2009
Date of revision: 02 Feb 2009
Handle: RePEc:ubc:clssrn:clsrn_admin-2009-11

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Web page: http://www.clsrn.econ.ubc.ca/

Related research

Keywords: Post-Secondary Education; Student Loans; Credit Constraints;

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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.

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