More financial aid is not the best way to close the racial gap in tertiary education

South Africa’s large racial gap in enrolment in tertiary education can be attributed to the widely varying quality of primary and secondary education rather than to the low incomes of most black and coloured households. Thus, easing credit constraints for prospective tertiary students via increased financial aid is expected to have a limited impact on African and coloured enrolment. Instead, policymakers should focus on improving educational quality at schools attended by children from low-income households.