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- W2793258051 abstract "We estimate the effect of grant aid on City University of New York (CUNY) students' borrowing and attainment using a regression discontinuity/kink design based on the federal Pell Grant formula. Each dollar of grant aid reduces loans by $1.80 among borrowers. We only find crowd-out of this magnitude in colleges that, like CUNY, “offer” no loan aid and require students to opt into borrowing. We develop and empirically support a model that shows opt-in or other fixed borrowing costs can lead grants to crowd out large amounts of loan aid, lowering some students' attainment by reducing their liquid resources. (JEL D14, I22, I23, I26, J24)" @default.
- W2793258051 created "2018-03-29" @default.
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- W2793258051 date "2018-04-01" @default.
- W2793258051 modified "2023-09-25" @default.
- W2793258051 title "Borrowing Trouble? Human Capital Investment with Opt-In Costs and Implications for the Effectiveness of Grant Aid" @default.
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- W2793258051 doi "https://doi.org/10.1257/app.20160127" @default.
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