Do Struggling Students Benefit From Continued Student Loan Access? Evidence From University and Beyond
Yu-Wei Chu () and
Harold E Cuffe
No 8873, Working Paper Series from Victoria University of Wellington, School of Economics and Finance
We estimate the effects of access to student loans on university studentsâ€™ educational attainment and labor market returns in New Zealand. We exploit the introduction of a policy mandating a minimum pass rate of 50% for student loan renewals using a fuzzy regression discontinuity design and linked administrative records. For students around the threshold, retaining access to student loans increases their likelihood of re-enrollment by 70 percentage points, fiveyear completion rates by 40 percentage points, and seven-year completion rates by 70 percentage points. The effects are observed primarily among female students due to a substantial gender difference in compliance with the pass rate criterion. We find that retaining student loans likely leads to large labor market returns for female students, though the point estimates are often imprecise. Importantly, for struggling students, the return on further borrowing facilitates quick repayment of their student loan debt.
Keywords: Student loans; New Zealand; Tertiary study; University students (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:vuw:vuwecf:8873
Access Statistics for this paper
More papers in Working Paper Series from Victoria University of Wellington, School of Economics and Finance Alice Fong, Administrator, School of Economics and Finance, Victoria Business School, Victoria University of Wellington, PO Box 600 Wellington, New Zealand. Contact information at EDIRC.
Bibliographic data for series maintained by Library Technology Services ().