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Can student loans improve accessibility to higher education and student performance? An impact study of the case of SOFES, Mexico

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  • Canton, Erik
  • Blom, Andreas

Abstract

Financial aid to students in tertiary education can contribute to human capital accumulation through two channels: increased enrollment and improved student performance. We analyze the quantitative importance of both channels in the context of a student loan program (SOFES) implemented at private universities in Mexico. With regard to the first channel, enrollment, results from the Mexican household survey indicate that financial support has a strong positive effect on university enrollment. Given completion of upper secondary education, the probability of entering higher education rises 24 percent. Two data sourcesare used to investigate the second channel, student performance. Administrative data provided by SOFES are analyzed using a regression-discontinuity design, and survey data enable us to perform a similar analysis using a different control group. Empirical results suggest that SOFES recipients show better academic performance than students without a credit from SOFES. However, the results cannot be interpreted as a purely causal impact of the student loan program, since the impacts also could reflect (self-) selection of students.

Suggested Citation

  • Canton, Erik & Blom, Andreas, 2004. "Can student loans improve accessibility to higher education and student performance? An impact study of the case of SOFES, Mexico," Policy Research Working Paper Series 3425, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3425
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    References listed on IDEAS

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    Cited by:

    1. David S. Lee & Thomas Lemieux, 2009. "Regression Discontinuity Designs In Economics," Working Papers 1118, Princeton University, Department of Economics, Industrial Relations Section..
    2. Elena Del Rey & Bertrand Verheyden, 2008. "Loans, Insurance and Failures in the Credit Market for Students," Working Papers 359, Barcelona Graduate School of Economics.
    3. Mourifié, Ismael, 2015. "Sharp bounds on treatment effects in a binary triangular system," Journal of Econometrics, Elsevier, vol. 187(1), pages 74-81.
    4. Remberto De la Hoz Reyes & José L. Ramos Ruiz, 2013. "La política de educación superior en el fortalecimiento de las instituciones técnicas y tecnológicas en Colombia," REVISTA DE ECONOMÍA DEL CARIBE 014756, UNIVERSIDAD DEL NORTE.
    5. 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.
    6. World Bank, 2010. "Reform and Regional Integration of Professional Services in East Africa : Time for Action," World Bank Other Operational Studies 2957, The World Bank.
    7. Murakami, Yuki & Blom, Andreas, 2008. "Accessibility and affordability of tertiary education in Brazil, Colombia, Mexico and Peru within a global context," Policy Research Working Paper Series 4517, The World Bank.

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