Can student aid policy alter spatial inequality in university enrolment? Evidence from a policy reform in the Netherlands

Distance can form a barrier to enrolment in a university programme, particularly when it requires a student to move out of the parental home. Many high-income countries offer an additional student grant to students living away from the parental home to partly compensate them for their higher financial costs. However, it is unclear whether such a financially oriented policy reduces the role of distance in university choice and how it compares to a similar but less costly policy offering student loans instead of grants.