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Social and Behavioral Sciences Commons

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W.E. Upjohn Institute for Employment Research

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Consumer protection

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Full-Text Articles in Social and Behavioral Sciences

How Does The Elimination Of State Aid To For-Profit Colleges Affect Enrollment? Evidence From California’S Reforms, Oded Gurantz, Ryan Sakoda, Shayak Sarkar Nov 2021

How Does The Elimination Of State Aid To For-Profit Colleges Affect Enrollment? Evidence From California’S Reforms, Oded Gurantz, Ryan Sakoda, Shayak Sarkar

Upjohn Institute Working Papers

This paper examines how financial aid reform based on postsecondary institutional performance impacts student choice. Federal and state regulations often reflect concerns about the private, for-profit sector’s poor employment outcomes and high loan defaults, despite the sector’s possible theoretical advantages. We use student-level data to examine how eliminating public subsidies to attend low-performing for-profit institutions impacts students’ college enrollment and completion behavior. Beginning in 2011, California tightened eligibility standards for their state aid program, effectively eliminating most for-profit eligibility. Linking data on aid application to administrative payment and postsecondary enrollment records, this paper utilizes a difference-in differences strategy to investigate …


How Does The Elimination Of State Aid To For-Profit Colleges Affect Enrollment?: Evidence From California’S Reforms, Oded Gurantz, Ryan Sakoda, Shayak Sarkar Nov 2021

How Does The Elimination Of State Aid To For-Profit Colleges Affect Enrollment?: Evidence From California’S Reforms, Oded Gurantz, Ryan Sakoda, Shayak Sarkar

Upjohn Institute Policy and Research Briefs

No abstract provided.