Is Debt Relief As Good As Liquidity? The Impact Of Prospective Student Debt On Post-Secondary Attendance Among Low-Income Youth

In this paper, the author estimates the impact of offering two large non-refundable grants to low-income Canadian youth on postsecondary attendance. The grants had two interesting features. First, they were clawed back from loans, thus reducing costs but providing no additional liquidity. Second, the grants were only available to students if parental income was below a fixed threshold. This sharp discontinuity in the offer of the grants provides for near ideal conditions to study their causal impact, closely mimicking random assignment.

Provided by: Canadian Labour Market and Skills Researcher Network Topic: Start-Ups Date Added: Mar 2011 Format: PDF

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