 The effect of student loans on college enrollment: Evidence from municipality panel data in JapanShinpei Sano Japan and the World Economy, 2019, vol. 52, issue C Abstract: This study examines whether the criteria expansion for student loan eligibility promotes the college enrollment of high school graduates in Japan. In 1999, the Japan Student Services Organization revised the eligibility criteria of the student loan system based on household earnings. Before the revision, the maximum allowable earnings for student loan applications differed across regions; some region’s had lower criteria than others. After the revision, the criteria for regions with lower maximum allowable earnings were adjusted upwards to match regions with higher ones. We conducted a difference-in-differences estimation by using municipal panel data from 1998 to 2003. We found that the expansion of eligibility for student loans improved the male college enrollment rate by around 0.5 to 0.7% points, while female enrollment was less sensitive to the expansion of student loan eligibility. The impact of the student loan eligibility expansion is larger for low income areas. Keywords: College enrollment; Student loans; Difference-in-differences (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:52:y:2019:i:c:s092214251930009x DOI: 10.1016/j.japwor.2019.100979 Access Statistics for this article Japan and the World Economy is currently edited by Robert Dekle and Yasushi Hamao More articles in Japan and the World Economy from Elsevier |
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