The impact of income-contingent provisions on students' loan-taking behaviour
Purpose - This paper aims to investigate the determinants of taking out government-funded student loans for university study in Australia. Design/methodology/approach - The paper uses an ordered probit model to quantify the influence of the various factors which affect students' decisions on funding their tertiary study using student loans or through other means. Findings - The study finds that the probability of taking out student loans for the full cost of university is largely influenced by students' socioeconomic status. Other major influences on this decision include students' demographic and university enrolment characteristics. Research limitations/implications - A limitation of the work is that only a neighbourhood (rather than an individual-level) measure of socioeconomic status was available, and future research should seek to address this. Practical implications - The research shows that the parameters of loan schemes do not seem to be able to over-ride the influence that family background has on loan taking behaviour. That is, poor students use loans regardless of the parameters of the loans scheme in order to overcome short-term credit constraints. In other words, these student loan schemes channel funds to those without other means of funding their higher education. Originality/value - By showing the impact that income contingent provisions have on loan taking behaviour, the paper informs policy makers of potential impacts from modifying loans schemes to reflect this characteristic.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 35 (2008)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/jes.htm Email:
When requesting a correction, please mention this item's handle: RePEc:eme:jespps:v:35:y:2008:i:1:p:4-25. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.