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

Listed author(s):
  • Booij, Adam S.
  • Leuven, Edwin
  • Oosterbeek, Hessel

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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File URL: http://www.sciencedirect.com/science/article/pii/S0272775711001427
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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
DOI: 10.1016/j.econedurev.2011.08.009
Contact details of provider: Web page: http://www.elsevier.com/locate/econedurev

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