81207 enGender Impact: The World Bank’s Gender Impact Evaluation Database Can Student Loans Improve Accessibility to Higher Education and Student Performance? An Impact Study of the Case of SOFES, Mexico Author(s) Erik Canton and Andreas Blom Contact ablom@worldbank.org Country Mexico Organizing Theme Education and Skills Status Completed Intervention Category Cash Transfer Sector Education Financial aid to students in tertiary education can contribute to human capital accumulation through two channels: increased enrollment and improved student performance. We analyze the quantitative importance of both channels in the context of a student loan program (SOFES) implemented at private universities in Mexico. With regard to the first channel, enrollment, results from the Mexican household survey indicate that financial support has a strong positive effect on university enrollment. Given completion of upper secondary education, the probability of entering higher education rises 24 percent. Two Abstract data sources are used to investigate the second channel, student performance. Administrative data provided by SOFES are analyzed using a regression-discontinuity design, and survey data enable us to perform a similar analysis using a different control group. Empirical results suggest that SOFES recipients show better academic performance than students without a credit from SOFES. However, the results cannot be interpreted as a purely causal impact of the student loan program, since the impacts also could reflect (self-) selection of students. Gender Connection Gender Informed Analysis Gender Outcomes Gender disaggregated school enrollment, school performance IE Design Regression Discontinuity Public university cannot meet the demand for higher education, and private education is quite expensive. A group of 40 private universities introduced a credit program for needy Intervention and academically talented students. The program is both need and merit based but it is also selective. Intervention Period 1998- The study uses two surveys, first a sample that only includes students who receive the credit, and another large scale survey of students and graduates of Mexican private Sample population universities. The program-only sample is comprised of 6102 Bachelor students and 699 masters students who have a credit. An additional survey of Mexican students includes 1087 students not in the program and 731 students in the program. The study compares individuals who are barely eligible for the program to individuals who Comparison conditions are barely ineligible. Last updated: 14 August 2013 1 enGender Impact: The World Bank’s Gender Impact Evaluation Database Unit of analysis Student Level Evaluation Period 2003 Students who receive some kind of financial support have a 24% higher chance of enrollment into a university program. Recipients of the program have small but significant Results improvements to test scores. Treated students are more likely to work on the side during school. The loan does not seem to have any impact on school choice. Approximately half of program recipients are female. Students in the control group receive a lower loan than the treated group. This could Primary study limitations induce dynamic selection to treated. Funding Source Canton, E. J. F., & Blom, A. (2004). Can student loans improve accessibility to higher Reference(s) education and student performance? An impact study of the case of SOFES, Mexico. An Impact Study of the Case of SOFES, Mexico (October 2004). World Bank Policy Research Link to Studies http://www1.worldbank.org/prem/poverty/ie/dime_papers/312.pdf Microdata Last updated: 14 August 2013 2