Enrolment into Higher Education and Changes in Repayment Obligations of Student Aid: Microeconometric Evidence for Germany

Hans Baumgartner and Viktor Steiner

No 444, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: We evaluate the effect of the federal students' financial assistance scheme (BAfoeG) on enrolment rates into higher education by exploiting the exogenous variation introduced through a discrete shift in the repayment regulations. Supported students had to repay the full loan until 1990. Thereafter, 50 percent of the student aid has been offered as a non-repayable grant. Our results from simple difference-in-difference estimates suggest that student aid is ineffective in raising enrolment rates. Our findings may have important implications for the current debate on the reform of financing higher education in Germany and elsewhere.

Keywords: Educational decision; Educational finance; Higher education; Difference-in-difference; Discrete-choice (search for similar items in EconPapers)
JEL-codes: I22 I28 J24 (search for similar items in EconPapers)
Pages: 25 p.
Date: 2004
New Economics Papers: this item is included in nep-eec
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Citations: View citations in EconPapers (3)

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Working Paper: Enrolment into Higher Education and Changes in Repayment Obligations of Student Aid – Microeconometric Evidence for Germany (2004)
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