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Financial Aid, Tuition Controls, and Access to Selective Higher Education: A Study of South Korea's Half-Tuition Reform

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Title: Financial Aid, Tuition Controls, and Access to Selective Higher Education: A Study of South Korea's Half-Tuition Reform
Language: English
Authors: Jin-Kwon Lee (ORCID 0000-0003-2641-3391), Jeong Youn Lee (ORCID 0000-0002-6781-6237), Hannah Kim (ORCID 0009-0005-6777-5999)
Source: Research in Higher Education. 2026 67(2).
Availability: Springer. Available from: Springer Nature. One New York Plaza, Suite 4600, New York, NY 10004. Tel: 800-777-4643; Tel: 212-460-1500; Fax: 212-460-1700; e-mail: customerservice@springernature.com; Web site: https://link.springer.com/
Peer Reviewed: Y
Page Count: 34
Publication Date: 2026
Document Type: Journal Articles
Reports - Research
Education Level: Higher Education
Postsecondary Education
Descriptors: Foreign Countries, Selective Admission, Student Financial Aid, Tuition, Access to Education, National Programs, Scholarships, Universities, College Freshmen, Low Income Students
Geographic Terms: South Korea
DOI: 10.1007/s11162-025-09879-x
ISSN: 0361-0365
1573-188X
Abstract: Building on the Bennett Hypothesis literature, we investigate the unintended effect of South Korea's 2012 'half-tuition policy'--a policy bundle combining the large-scale, quasi-universal National Scholarship program with a binding tuition cap--on the relationship between university selectivity and students' economic backgrounds. Using an interrupted time series analysis, we analyze data from 207 four-year universities across Korea during 2008-2014 (2009-2014 for covariate-adjusted models). We classify universities into three selectivity tiers--Most, More, and Less selective--and examine changes in the average household income of first-year students before and after the policy was implemented. The findings indicate that while the universal scholarship program and the tuition cap together significantly improve affordability and increase enrollment among low-income students, they fail to address disparities effectively at highly selective universities. We argue that, under binding tuition constraints, aid expansions may shift competition to nonprice margins--including admissions--thereby sustaining socioeconomic advantages. Moreover, unintended effects may occur, including increased selectivity and competition among universities. For policy implications, we suggest the need for targeted financial aid and affirmative action strategies to ensure equitable access to higher education.
Abstractor: As Provided
Entry Date: 2026
Accession Number: EJ1505502
Database: ERIC
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  Data: Financial Aid, Tuition Controls, and Access to Selective Higher Education: A Study of South Korea's Half-Tuition Reform
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  Data: <searchLink fieldCode="AR" term="%22Jin-Kwon+Lee%22">Jin-Kwon Lee</searchLink> (ORCID <externalLink term="http://orcid.org/0000-0003-2641-3391">0000-0003-2641-3391</externalLink>)<br /><searchLink fieldCode="AR" term="%22Jeong+Youn+Lee%22">Jeong Youn Lee</searchLink> (ORCID <externalLink term="http://orcid.org/0000-0002-6781-6237">0000-0002-6781-6237</externalLink>)<br /><searchLink fieldCode="AR" term="%22Hannah+Kim%22">Hannah Kim</searchLink> (ORCID <externalLink term="http://orcid.org/0009-0005-6777-5999">0009-0005-6777-5999</externalLink>)
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  Data: Springer. Available from: Springer Nature. One New York Plaza, Suite 4600, New York, NY 10004. Tel: 800-777-4643; Tel: 212-460-1500; Fax: 212-460-1700; e-mail: customerservice@springernature.com; Web site: https://link.springer.com/
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  Data: <searchLink fieldCode="DE" term="%22Foreign+Countries%22">Foreign Countries</searchLink><br /><searchLink fieldCode="DE" term="%22Selective+Admission%22">Selective Admission</searchLink><br /><searchLink fieldCode="DE" term="%22Student+Financial+Aid%22">Student Financial Aid</searchLink><br /><searchLink fieldCode="DE" term="%22Tuition%22">Tuition</searchLink><br /><searchLink fieldCode="DE" term="%22Access+to+Education%22">Access to Education</searchLink><br /><searchLink fieldCode="DE" term="%22National+Programs%22">National Programs</searchLink><br /><searchLink fieldCode="DE" term="%22Scholarships%22">Scholarships</searchLink><br /><searchLink fieldCode="DE" term="%22Universities%22">Universities</searchLink><br /><searchLink fieldCode="DE" term="%22College+Freshmen%22">College Freshmen</searchLink><br /><searchLink fieldCode="DE" term="%22Low+Income+Students%22">Low Income Students</searchLink>
– Name: Subject
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  Data: <searchLink fieldCode="DE" term="%22South+Korea%22">South Korea</searchLink>
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  Data: 10.1007/s11162-025-09879-x
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  Data: Building on the Bennett Hypothesis literature, we investigate the unintended effect of South Korea's 2012 'half-tuition policy'--a policy bundle combining the large-scale, quasi-universal National Scholarship program with a binding tuition cap--on the relationship between university selectivity and students' economic backgrounds. Using an interrupted time series analysis, we analyze data from 207 four-year universities across Korea during 2008-2014 (2009-2014 for covariate-adjusted models). We classify universities into three selectivity tiers--Most, More, and Less selective--and examine changes in the average household income of first-year students before and after the policy was implemented. The findings indicate that while the universal scholarship program and the tuition cap together significantly improve affordability and increase enrollment among low-income students, they fail to address disparities effectively at highly selective universities. We argue that, under binding tuition constraints, aid expansions may shift competition to nonprice margins--including admissions--thereby sustaining socioeconomic advantages. Moreover, unintended effects may occur, including increased selectivity and competition among universities. For policy implications, we suggest the need for targeted financial aid and affirmative action strategies to ensure equitable access to higher education.
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      – SubjectFull: Foreign Countries
        Type: general
      – SubjectFull: Selective Admission
        Type: general
      – SubjectFull: Student Financial Aid
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      – SubjectFull: Tuition
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      – SubjectFull: Access to Education
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      – SubjectFull: National Programs
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      – SubjectFull: Scholarships
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      – SubjectFull: College Freshmen
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      – SubjectFull: Low Income Students
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      – SubjectFull: South Korea
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