Assessing the Impact of a Student Loan Program on Time-to-Degree: The Case of a Program in Peru

Luis Garcia

Abstract


This paper evaluates whether student loans given to poor students at a large university in Peru are effective in reducing the time-to-degree. It uses a methodology that avoids the “selection problem” because the students voluntarily request a loan depending on their economic situation. The econometric results confirm the negative effect of educational loans for students.


Keywords


Student loans; time-to-degree; higher education

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