- Research Article
- 10.1080/00313831.2026.2663361
The social gradient of incentivising credit completion
- May 01, 2026
- Scandinavian Journal of Educational Research
- Andreas Fidjeland + 1 more +1
ABSTRACT Student loans and grants is one of the primary tools for policymakers to provide equal opportunities to pursue higher education. However, policymakers are also tasked with using scarce public resources efficiently. Concerns over slow progression and low completion rates led to a significant restructuring of the financial aid system in Norway in 2002–04 which made previously unconditional grants conditional on adequate academic progression, aiming to provide financial incentives for students to complete their studies. We show that under the new system, the gap in grant amounts received between students from different socioeconomic backgrounds have increased substantially, with advantaged students receiving a majority share of the grant disbursement. Such distributional effects could be justified if efficiency is the primary policy objective, but raises issues for policymakers who might also value equitable outcomes.
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