The credits that count: how credit growth and financial aid affect college tuition and fees

  title={The credits that count: how credit growth and financial aid affect college tuition and fees},
  author={Katharina Ley Best and Jussi Keppo},
  journal={Education Economics},
  pages={589 - 613}
  • K. BestJ. Keppo
  • Published 16 November 2011
  • Economics, Education
  • Education Economics
Using a two-stage least squares model, we build a macroeconomic model of supply and demand for US higher education as measured by enrollment. We find that college education benefits (e.g. relative earnings and employment level), credit factors (e.g. student loan amounts and household debt), and financial aid shift demand. Higher tuition prices increase the appeal of higher education for students but credit constraints put a barrier on demand growth. Tuition prices and debt levels are highly… 

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