THE EFFECT OF TAX-BASED FEDERAL STUDENT AID ON COLLEGE ENROLLMENT
Open accessAbstract
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.
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Early work examining the introduction of the Hope and Lifetime Learning tax credits generated conflicting findings, with Long (2004) finding no effects on college enrollment and Turner (2011) finding positive effects.
“Early work examining the introduction of the credits generated conflicting findings, with Long (2004) finding no effects on college enrollment and Turner (2011) finding positive effects.”
From College Costs, Financial Aid, and Student Decisions (2022) · cites this paper as Turner (2011)
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- Authors
- Turner, N.
- Affiliations
- University of California San Diego (US)
- Corresponding author
- Turner, Nicholas
- ORCID
- Turner, Nicholas
- Venue
- National Tax Journal
- Publisher
- University of Chicago Press
- Published
- 2011-09-01
- Volume
- 64
- Issue
- 3
- Pages
- 839-861
- ISSN
- 0028-0283 (ISSN-L)
- 1944-7477
- OpenAlex
- W1496598671
- Cited by
- 49
- References
- 35
- Citations by year
- 2026: 2 · 2025: 1 · 2023: 1 · 2022: 3 · 2021: 1 · 2020: 4 · 2019: 3 · 2018: 4 · 2017: 2 · 2016: 5 · 2015: 7 · 2014: 4 · 2013: 7 · 2012: 4
- FWCI
- 23.08
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- public-domain
- Locations
- National Tax Journal (publishedVersion, public-domain)
- RePEc: Research Papers in Economics (submittedVersion)
- Funders
- Sage Foundation
- Harvard University
- Topics
- Social Sciences › Education › Higher Education Research Studies
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Politics, Economics, and Education Policy
- Social Sciences › Education › School Choice and Performance
- Keywords
- college enrollment, postsecondary education, tax incentives, part-time admission, middle class
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