EconPapers    
Economics at your fingertips  
 

Student loans: Liquidity constraint and higher education in South Africa

Marc Gurgand, Adrien Lorenceau () and Thomas Melonio

PSE Working Papers from HAL

Abstract: Empirical evidence that access to higher education is constrained by credit availability is limited and usually indirect. This paper provides direct evidence by comparing university enrollment rates of South African potential students, depending on whether they get a loan or not to cover their registration fees, in a context where such fees are high. We use matched individual data from both a credit institution (Eduloan) and the Department of Education. Based on a regression discontinuity design using the fact that loans are granted according to a credit score threshold, we can estimate the causal impact of loan obtainment. We find that the credit constraint is substantial, as it decreases the enrollment rate into higher education by more than 20 percentage points in a population of student loan applicants.

Keywords: Education; university; credit constraint; regression discontinuity (search for similar items in EconPapers)
Date: 2011-05
New Economics Papers: this item is included in nep-afr, nep-dev, nep-edu, nep-lab and nep-mfd
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00590898
References: View complete reference list from CitEc
Citations: View citations in EconPapers (22) Track citations by RSS feed

Downloads: (external link)
https://halshs.archives-ouvertes.fr/halshs-00590898/document (application/pdf)

Related works:
Working Paper: Student loans: Liquidity constraint and higher education in South Africa (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:psewpa:halshs-00590898

Access Statistics for this paper

More papers in PSE Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2021-07-19
Handle: RePEc:hal:psewpa:halshs-00590898