Estimating taxpayer subsidies and individual repayment burdens of a student loan program in Spain

  1. Francisco José Callado-Muñoz 1
  2. Elena del Rey Canteli 2
  3. Natalia Utrero-González 1
  1. 1 Universidad de Zaragoza
    info

    Universidad de Zaragoza

    Zaragoza, España

    ROR https://ror.org/012a91z28

  2. 2 Universitat de Girona
    info

    Universitat de Girona

    Girona, España

    ROR https://ror.org/01xdxns91

Aldizkaria:
Hacienda Pública Española / Review of Public Economics

ISSN: 0210-1173

Argitalpen urtea: 2017

Zenbakia: 220

Orrialdeak: 89-106

Mota: Artikulua

DOI: 10.7866/HPE-RPE.17.1.3 DIALNET GOOGLE SCHOLAR lock_openSarbide irekia editor

Beste argitalpen batzuk: Hacienda Pública Española / Review of Public Economics

Garapen Iraunkorreko Helburuak

Laburpena

We study the program Préstamos Renta Universidad that provided loans to Master’s students in Spain between 2007 and 2010. We estimate predicted income functions and calculate individual repayment burdens and government cost using unconditional quantile regression analysis. We exploit the changing conditions of the successive calls to illustrate three important lessons for the design of student loan schemes: fixed monthly repayments exert an excessive burden to graduates at the lower end of the income distribution; general interest rate subsidies are costly to the taxpayer and unfairly distributed; while the deferment of payments due in case of hardship protects low earners, general grace periods are costly and inequitable.

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