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The role of information in the take-up of student loans

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  • Booij, Adam S.
  • Leuven, Edwin
  • Oosterbeek, Hessel

Abstract

We study student loan behavior in the Netherlands where (i) higher education students know little about the conditions of the government's financial aid program and (ii) take-up rates are low. In a field experiment we manipulated the amount of information students have about these conditions. The treatment has no impact on loan take-up, which is not due to students already having decided to take a loan or students not absorbing the information. We conclude that a lack of knowledge about specific policy parameters does not necessarily imply a binding information constraint.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 31 (2012)
Issue (Month): 1 ()
Pages: 33-44

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Handle: RePEc:eee:ecoedu:v:31:y:2012:i:1:p:33-44

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Web page: http://www.elsevier.com/locate/econedurev

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Keywords: Field experiment; Student debt; Student loans; Loan conditions; Information;

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References

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Citations

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Cited by:
  1. Trude Gunnes & Lars J. Kirkebøen & Marte Rønning, 2011. "Financial incentives and study duration in higher education," Working Paper Series 11511, Department of Economics, Norwegian University of Science and Technology.
  2. Marty McGuigan & Sandra McNally & Gill Wyness, 2012. "Student Awareness of Costs and Benefits of Educational Decisions: Effects of an Information Campaign," CEE Discussion Papers 0139, Centre for the Economics of Education, LSE.
  3. Webley, Paul & Nyhus, Ellen K., 2013. "Economic socialization, saving and assets in European young adults," Economics of Education Review, Elsevier, vol. 33(C), pages 19-30.

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