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

Author

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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.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:ecoedu:v:31:y:2012:i:1:p:33-44
    DOI: 10.1016/j.econedurev.2011.08.009
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    More about this item

    Keywords

    Field experiment; Student debt; Student loans; Loan conditions; Information;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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