THE EFFECT OF TAX-BASED FEDERAL STUDENT AID ON COLLEGE ENROLLMENT
Tax-based federal student aid — the Hope Tax Credit, Lifetime Learning Tax Credit, and Tuition Deduction — marks a new paradigm for federal aid by offering tax incentives for postsecondary enrollment for the middle class. I exploit policy-induced variation in tax-based aid eligibility to estimate its causal effect on college enrollment. I find that tax-based aid increases full-time enrollment in the first two years of college for 18 to 19 years old by 7 percent. The price sensitivity of enrollment suggests that college enrollment increases 0.3 percentage points per $100 of taxbased aid. The programs do not appear to substantively affect part-time enrollment in the first two years of college.
Year of publication: |
2011
|
---|---|
Authors: | Turner, Nicholas |
Published in: |
National Tax Journal. - National Tax Association - NTA. - Vol. 64.2011, 3, p. 839-61
|
Publisher: |
National Tax Association - NTA |
Saved in:
freely available
Saved in favorites
Similar items by person
-
BERGER, DAVID, (2019)
-
Interstate Fiscal Disparity in State Fiscal Year 1999
Tannenwald, Robert, (2004)
-
Political Alignment, Attitudes Toward Government and Tax Evasion
Cullen, Julie Berry, (2018)
- More ...