Do Academically Struggling Students Benefit from Continued Student Loan Access? Evidence from University and Beyond

• 成果类型: Article
• 署名作者: Chu, Yu-Wei Luke; Cuffe, Harold E.
• 署名单位: Victoria University Wellington
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_01144
• 发表日期: 2024-01
• 页码: 68-84
• 关键词: gender-differences; financial-aid; debt; CONSEQUENCES; attitudes; education; earnings; returns; career

摘要

We estimate the effects of student loan access on educational attainment and labor market returns in New Zealand. We exploit the introduction of a national policy mandating a 50% pass rate for student loan renewals using a regression discontinuity design. Retaining loan access increases reenrollment for students around the threshold, and a majority eventually graduate with a bachelor's degree within seven years. We find that retaining student loan access leads to large labor market returns for struggling students. The additional debt from further borrowing is small relative to the earnings returns and declines quickly due to faster repayment.