Student funding policies: an analysis of the impact of Fies on the completion time of higher education

Abstract This study evaluated the impact of Fies (Brazilian funding program for students) on the total time and delay of the completion of higher education students enrolled in presential courses at private institutions based on information from INEP between 2007 and 2017. The total time is the number of years that the student was enrolled, whereas the delay refers to the number of years that the student took to complete the course beyond the minimum period of completion. The impact of Fies on the total time estimated by propensity score was around 4 months. The results of the delay variable also suggested a positive impact, but less intense and only significant in the first stage of the program, that is, from 2000 to 2009. Estimates were also made using the Lewbel method (2012), in an attempt to deal with the possible bias of unobservable characteristics that influence the individual decision to apply for Fies. The analysis showed a possible overestimation of the results when the unobserved characteristics of the students are not considered.