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Title: Borrowing Constraints, College Enrollment, and Delayed Entry
Resulting in 1 citation.
1. Johnson, Matthew T.
Borrowing Constraints, College Enrollment, and Delayed Entry
Journal of Labor Economics 31,4 (October 2013): 669-725.
Also: http://www.jstor.org/stable/10.1086/669964
Cohort(s): NLSY97
Publisher: University of Chicago Press
Keyword(s): College Enrollment; Debt/Borrowing; Financial Assistance; High School Completion/Graduates; Tuition

In this article, I propose and estimate a dynamic model of education, borrowing, and work decisions of high school graduates. I examine the effect of relaxing borrowing constraints on educational attainment by simulating increases in the amount students are permitted to borrow from government-sponsored loan programs. My results indicate that borrowing constraints have a small impact on attainment: the removal of education-related borrowing constraints raises bachelor’s degree completion by 2.4 percentage points. Tuition subsidies are necessary to obtain larger increases: I find that higher subsidies for average-ability students are the most cost effective targeted tuition subsidies.
Bibliography Citation
Johnson, Matthew T. "Borrowing Constraints, College Enrollment, and Delayed Entry." Journal of Labor Economics 31,4 (October 2013): 669-725.