Paying Tuition under Few Credit Constraints: Debt, Field of Study, and Drop Out

Don Tawanpitak

No 226, PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research

Abstract: This study examines the effects of increased tuition fees in a context with minimal credit constraints—namely, the United Kingdom. It focuses on the effects on students’ financing choices, field of study selection, and dropout rates. Exploiting the UK’s institutional setting, a tuition fee reform that tripled tuition fees, and administrative datasets, I find that higher fees significantly increase the use of government loans but have minimal impact on field of study selection or dropout rates. Suggestive evidence indicates that enrollment is also unaffected. These findings suggest that addressing credit constraints could enable higher tuition fees without significantly harming students.

Keywords: Tuition fee; Credit constraint; Student loan; Field of study; Drop out (search for similar items in EconPapers)
JEL-codes: I21 I22 I28 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2024-12, Revised 2025-01
New Economics Papers: this item is included in nep-cfn
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