Individual Demand for Higher Education

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Abstract
Access to higher education has increasingly become a major priority for state and federal policy-makers. Mixtures of student financial aid and low tuition have increasingly been viewed as the means for equalizing access to and choice among institutions of higher education. This paper reviews the recent empirical evidence on the impact of price changes on individual demand for higher education. The evidence suggests that both low tuition and student grants do stimulate increases in enrollment. However, the student aid induced enrollment response is relatively low and the cost per additional student attracted to higher education may be very high.

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