We evaluate the effect of the federal students' financial assistance scheme (BAfoeG) on enrolment rates into higher education by exploiting the exogenous variation introduced through a discrete shift in the repayment regulations. Supported students had to repay the full loan until 1990....

In January 2005, the ban on tuition in Germany has been declared unlawful. As a result, many 'Lander' developed plans to introduce tuition fees as soon as possible. It is shown in this paper, that the impact of tuition is very different among states. The willingness to pay varies not only by...