This paper provides one of the first analyses of the benefits of scholarships and bursaries to the university student in Ontario and Canada and has potentially important policy implications. [...] The postal code in the OUAC data allows us to link the residence of the student’s family at the time of application to the corresponding census neighbourhood data for Enumeration Areas (EA) in 1996 and Dissemination Areas (DA) in 2001 and 2006. [...] Other neighbourhood characteristics that we use in our regressions are the proportion of the adults with a bachelor’s degree education or above, the proportion of families headed by a lone mother, the proportion of persons with English as a mother tongue, the proportion of persons who have immigrated to Canada since 1981, and the proportion of adults who are unemployed. [...] Other high school characteristics that we use include the distance to the nearest university and nearest college, the type of high school (private, public, separate, Francophone), the size of the student body and the high school’s location, in a rural or urban area. [...] As discussed above, we also include a series of other characteristics (X) of the student (including high school GPA), the neighborhood in which the student resided at the time of application, and the high school which the student attended.9.