Cellini, S.R. et al <br/><br/>
Where do students go when for-profit colleges lose federal aid 

 - American Economic Journal: Economic Policy   
 - 12(2), May, 2020: p.46-83 
<br/><br/> We examine the effects of federal sanctions imposed on for-profit institutions in the 1990s. Using county-level variation in the timing and magnitude of sanctions linked to student loan default rates, we estimate that sanctioned for-profits experience a 68 percent decrease in annual enrollment following sanction receipt. Enrollment losses due to for-profit sanctions are 60–70 percent offset by increased enrollment within local community colleges, where students are less likely to default on federal student loans. Conversely, for-profit sanctions decrease enrollment in local unsanctioned for-profit competitors, likely due to improved information about local options and reputational spillovers. Overall, market enrollment declines by 2 percent. – Reproduced <br/><br/>