Regulating for Equity? Estimating the Impact of State Regulation of For-Profit Colleges

• In Event: 81.018 - Who Sets the Agenda? Exploring the Role of the Courts, Intermediary Organizations, and State Regulators

Abstract

Given the current federal commitment to deregulate the for-profit college market, state regulations will likely become increasingly important. This study examines the effect of state regulations on the for-profit market and student outcomes. Using difference-in-differences and synthetic controls approaches, I estimate how long-lasting regulatory enforcement by state attorneys general impact the size of the for-profit market and the outcomes of students at these institutions. Preliminary findings suggest regulatory action may improve completion rates at two-year institutions, but have minimal effects on defaults and repayment rates. Moreover, it appears the lowest cost institutions are driven out of the market. These findings are important for understanding how state regulation may impact the market, and how these effects vary by state context.

Author

• James Dean Ward, Ithaka S+R