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An empirical analysis of borrowing behaviour of higher education students in the Netherlands

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  • Oosterbeek, Hessel
  • van den Broek, Anja

Abstract

Many higher education students combine their study with a job on the side instead of taking up a loan. This paper examines the factors underlying this apparently myopic behaviour. We find that standard economic factors explain observed borrowing decisions to some extent. Students with easier access to financial resources borrow less often. Students with good earnings prospects and/or a high discount rate borrow more often, as do students who are prepared to take risks. An important non-standard factor affecting borrowing choices is debt aversion. We also find that a reduction in working hours will only have a limited positive impact on the time spend on studying.

Suggested Citation

  • Oosterbeek, Hessel & van den Broek, Anja, 2009. "An empirical analysis of borrowing behaviour of higher education students in the Netherlands," Economics of Education Review, Elsevier, vol. 28(2), pages 170-177, April.
    • Handle: RePEc:eee:ecoedu:v:28:y:2009:i:2:p:170-177
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    References listed on IDEAS

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    2. Lergetporer, Philipp & Woessmann, Ludger, 2019. "The Political Economy of Higher Education Finance: How Information and Design Affect Public Preferences for Tuition," Rationality and Competition Discussion Paper Series 145, CRC TRR 190 Rationality and Competition.
    3. Lergetporer, P & Woessmann, L, 2022. "Income Contingency and the Electorates Support for Tuition," CAGE Online Working Paper Series 606, Competitive Advantage in the Global Economy (CAGE).
    4. Yu Hao & Shuang Liu & Zhu Liduzi Jiesisibieke & Yi-Jie Xu, 2019. "What Determines University Students’ Online Consumer Credit? Evidence From China," SAGE Open, , vol. 9(1), pages 21582440198, March.
    5. Claire Callender & Geoff Mason, 2017. "Does Student Loan Debt Deter Higher Education Participation? New Evidence from England," The ANNALS of the American Academy of Political and Social Science, , vol. 671(1), pages 20-48, May.
    6. Booij, Adam S. & Leuven, Edwin & Oosterbeek, Hessel, 2012. "The role of information in the take-up of student loans," Economics of Education Review, Elsevier, vol. 31(1), pages 33-44.
    7. Harrison, Neil & Agnew, Steve & Serido, Joyce, 2015. "Attitudes to debt among indebted undergraduates: A cross-national exploratory factor analysis," Journal of Economic Psychology, Elsevier, vol. 46(C), pages 62-73.
    8. Thomas Meissner & David Albrecht, 2022. "Debt Aversion: Theory and Measurement," Papers 2207.07538, arXiv.org, revised Jul 2022.
    9. Bartkevičiūtė Gintarė & Gaigalienė Asta & Legenzova Renata, 2018. "The Assessment of Determinants of Credit Services’ Choices among Students," Management of Organizations: Systematic Research, Sciendo, vol. 79(1), pages 7-23, June.
    10. Herber, Stefanie P. & Kalinowski, Michael, 2016. "Non-take-up of Student Financial Aid: A Microsimulation for Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145727, Verein für Socialpolitik / German Economic Association.
    11. Gicheva, Dora, 2016. "Student loans or marriage? A look at the highly educated," Economics of Education Review, Elsevier, vol. 53(C), pages 207-216.
    12. Radhakrishnan Gopalan & Barton H. Hamilton & Jorge Sabat & David Sovich, 2024. "Aversion to Student Debt? Evidence from Low‐Wage Workers," Journal of Finance, American Finance Association, vol. 79(2), pages 1249-1295, April.
    13. Fairley, Kim & Weitzel, Utz, 2017. "Ambiguity and risk measures in the lab and students’ real-life borrowing behavior," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 67(C), pages 85-98.
    14. Stephan Thomsen & Friederike von Haaren-Giebel, 2016. "Did tuition fees in Germany constrain students’ budgets? New evidence from a natural experiment," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-25, December.
    15. Kady Marie-Danielle Body & Liliane Bonnal & Jean-Fran篩s Giret, 2014. "Does student employment really impact academic achievement? The case of France," Applied Economics, Taylor & Francis Journals, vol. 46(25), pages 3061-3073, September.
    16. Stefanie P. Herber & Michael Kalinowski, 2016. "Non-Take-Up of Student Financial Aid: A Microsimulation for Germany," SOEPpapers on Multidisciplinary Panel Data Research 844, DIW Berlin, The German Socio-Economic Panel (SOEP).
    17. Aurora Ortiz-Nuñez, 2014. "Attitudes Toward Risk And Socioeconomic Factors Related To Educational Loans," Contemporary Economic Policy, Western Economic Association International, vol. 32(4), pages 710-718, October.
    18. Herber, Stefanie P. & Kalinowski, Michael, 2016. "Non-take-up of student financial aid: A microsimulation for Germany," BERG Working Paper Series 109, Bamberg University, Bamberg Economic Research Group.
    19. Sprietsma, Maresa, 2015. "Student employment: Advantage or handicap for academic achievement?," ZEW Discussion Papers 15-085, ZEW - Leibniz Centre for European Economic Research.
    20. Mewse, Avril J. & Lea, Stephen E.G. & Wrapson, Wendy, 2010. "First steps out of debt: Attitudes and social identity as predictors of contact by debtors with creditors," Journal of Economic Psychology, Elsevier, vol. 31(6), pages 1021-1034, December.

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