Student Choice and Social Mobility through Institutional Policy: An Examination of Loan Repayment Assistance Programs

Abstract

The cost of higher education continues to rise, forcing many students to seek financial support to pursue their education. Many countries have utilized national systems of student aid to help mitigate the increasing costs. However, these financial aid systems often lead to significant student debt. Guided by restrained choice theory, this study analyzes innovative institution-level policies in the United States called Loan Repayment Assistance Programs (LRAPs), and provides insight into how these policies affect traditionally disadvantaged students’ choice to enroll in a university. Findings suggest that disadvantaged students, specifically first-generation students, are more cognizant and have a better understanding of innovative financial policies (e.g., LRAPs), and the use of such programs could increase student choice and retention, based on their subsequent enrollment satisfaction.