Borrowing constraints College enrollment and delayed entry Matthew T. Johnson
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- unmediated
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- 0734-306
- HD5706 JOU
Item type | Current library | Call number | Vol info | Copy number | Status | Notes | Date due | Barcode | |
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Main Library - Special Collections | HD5706 JOU (Browse shelf(Opens below)) | Vol 31, No 4. Pge 669-725 | SP17577 | Not for loan | For In-house use only |
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In this article, I propose and estimate a dynamic model of education, borrowing, and work decisions of high school graduates. I examine the effect of relaxing borrowing constraints on educational attainment by simulating increases in the amount students are permitted to borrow from government-sponsored loan programs. My results indicate that borrowing constraints have a small impact on attainment: the removal of education-related borrowing constraints raises bachelor’s degree completion by 2.4 percentage points. Tuition subsidies are necessary to obtain larger increases: I find that higher subsidies for average-ability students are the most cost effective targeted tuition subsidie
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