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Non-take-up of student financial aid—A microsimulation for Germany

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  • Stefanie P. Herber
  • Michael Kalinowski

Abstract

We estimate the percentage of eligible students who do not take up their federal need-based student financial aid entitlements in a microsimulation model for the German Socio-Economic Panel Study 2002–2013. We find that about 40% of the eligible low-income students do not take up their entitlements. Non-take-up is inversely and rather inelastically related to the level of benefits. We investigate possible reasons for non-take-up, accounting for potential sample selection and endogeneity issues; and discuss policy implications.

Suggested Citation

  • Stefanie P. Herber & Michael Kalinowski, 2019. "Non-take-up of student financial aid—A microsimulation for Germany," Education Economics, Taylor & Francis Journals, vol. 27(1), pages 52-74, January.
    • Handle: RePEc:taf:edecon:v:27:y:2019:i:1:p:52-74
    DOI: 10.1080/09645292.2018.1490698
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