The sustainable funding of tertiary education is a subject of significant policy debate worldwide. In South Africa, the need to balance equitable access within a constrained fiscal environment has been a complex challenge. A legacy of racially segregated educational opportunities, together with student activism and protests, has shaped the political economy surrounding tertiary education funding. Policymakers continue to be faced with the challenge of funding students whose household income is too high to meet state financial aid eligibility, yet who struggle to afford tuition and accommodation expenses. In this context, exploring a policy instrument that differentiates students based on multidimensional socioeconomic need is critical. We motivate for a differentiated policy instrument that considers economic uncertainty of households as a dimension of socioeconomic need. A purpose of our paper is therefore to illustrate that income mobility can contribute to household vulnerability, and therefore to funding need. Household income mobility is estimated using a multivariate probit model that explicitly accounts for endogeneity of initial conditions, unobserved heterogeneity, and non-random panel attrition. We operationalise this model as a relevant empirical tool for analysing and understanding the implementation, expansion, and targeting of social policy more generally.

As US college costs continue to rise, governments and institutions have quadrupled financial aid. Yet, the administrative process of receiving financial aid remains complex, raising costs for families and deterring students from enrolling. In two large-scale field experiments (N = 265,570), we test the impact of nudging high-school seniors in California to register for state scholarships. We find that simplifying communication and affirming belonging each significantly increase registrations, by 9% and 11%, respectively. Yet, these nudges do not impact the final step of the financial aid process – receiving the scholarship. In contrast, a simplified letter that affirms belonging while also making comparable cost calculations more salient significantly impacts college choice, increasing enrollment in the lowest net cost option by 10.4%. Our findings suggest that different nudges are likely to address different types of administrative burdens, and their combination may be the most effective way to shift educational outcomes.

We use the Chinese College Student Survey, conducted in 2010, to examine levels of poverty among students on China's campuses. With the poverty line defined as the college-specific expenditures a student needs to maintain a basic living standard on campus, we find that 22 per cent of college students in China are living in poverty. Poverty is more severe among students from rural or western parts of the country. With a targeting count error of more than 50 per cent, it is important that the college need-based aid programme be improved. Lacking other income sources, poor students rely heavily on loans and paid employment to finance their college education.