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Student Loan Information Provision and Academic Choices

Author

Listed:
  • Maximilian Schmeiser
  • Christiana Stoddard
  • Carly Urban

Abstract

We examine the effect of a student loan information intervention on changes in college major using administrative data from the Montana University System from 2002-2014. Our difference-in-difference-in-differences strategy exploits the relative trends for students at Montana State University above and below the cutoff for receiving a warning letter about their student debt, compared to their counterparts at the University of Montana. We find that students who receive information suggesting they may be unlikely to be able to repay their loans are more likely to switch to higher earning majors, with higher academic performers most likely to choose STEM fields.

Suggested Citation

  • Maximilian Schmeiser & Christiana Stoddard & Carly Urban, 2016. "Student Loan Information Provision and Academic Choices," American Economic Review, American Economic Association, vol. 106(5), pages 324-328, May.
    • Handle: RePEc:aea:aecrev:v:106:y:2016:i:5:p:324-28
    Note: DOI: 10.1257/aer.p20161122
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    References listed on IDEAS

    as
    1. Rothstein, Jesse & Rouse, Cecilia Elena, 2011. "Constrained after college: Student loans and early-career occupational choices," Journal of Public Economics, Elsevier, vol. 95(1), pages 149-163.
    2. Maximilian D. Schmeiser & Christiana Stoddard & Carly Urban, 2015. "Does Salient Financial Information Affect Academic Performance and Borrowing Behavior among College Students?," Finance and Economics Discussion Series 2015-75, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Chu, Yu-Wei Luke & Cuffe, Harold E, 2020. "Do Struggling Students Benefit From Continued Student Loan Access? Evidence From University and Beyond," Working Paper Series 21067, Victoria University of Wellington, School of Economics and Finance.
    2. Eleonora Brandimarti, 2025. "Self-Selection, University Courses and Returns to Advanced Degrees," Papers 2511.09260, arXiv.org.
    3. Stoddard, Christiana & Urban, Carly & Schmeiser, Maximilian, 2017. "Can targeted information affect academic performance and borrowing behavior for college students? Evidence from administrative data," Economics of Education Review, Elsevier, vol. 56(C), pages 95-109.
    4. David Bounie & Youssouf Camara, 2020. "Card-Sales Response to Merchant Contactless Payment Acceptance," Post-Print hal-02296302, HAL.
    5. de Gendre, Alexandra & Kabátek, Jan, 2021. "From Subsidies to Loans: The Effects of a National Student Finance Reform on the Choices of Secondary School Students," IZA Discussion Papers 14686, IZA Network @ LISER.
    6. José Alberto Fuinhas & Victor Moutinho & Estefano Silva, 2019. "Delinquency and Default in USA Student Debt as a Proportional Response to Unemployment and Average Debt per Borrower," Economies, MDPI, vol. 7(4), pages 1-16, October.
    7. David Bounie & Youssouf Camara, 2019. "Card-Sales Response to Merchant Contactless Payment Acceptance: Causal Evidence," Working Papers hal-02296302, HAL.
    8. Pernagallo, Giuseppe, 2024. "The student funding dilemma," The Journal of Economic Asymmetries, Elsevier, vol. 30(C).
    9. Bounie, David & Camara, Youssouf, 2020. "Card-sales response to merchant contactless payment acceptance," Journal of Banking & Finance, Elsevier, vol. 119(C).
    10. Jing Jian Xiao & Nilton Porto & Irene McIvor Mason, 2020. "Financial capability of student loan holders who are college students, graduates, or dropouts," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(4), pages 1383-1401, December.
    11. Thomas Korankye & Charlene M. Kalenkoski, 2021. "The Effect of Households’ Student Debt on Life Satisfaction," Journal of Family and Economic Issues, Springer, vol. 42(4), pages 757-772, December.
    12. Isphording, Ingo E. & Qendrai, Pamela, 2019. "Gender Differences in Student Dropout in STEM," IZA Research Reports 87, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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