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Information Constraints and Financial Aid Policy

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  • Judith Scott-Clayton

Abstract

One justification for public support of higher education is that prospective students, particularly those from underprivileged groups, lack complete information about the costs and benefits of a college degree. Beyond financial considerations, students may also lack information about what they need to do academically to prepare for and successfully complete college. Yet until recently, college aid programs have typically paid little attention to students' information constraints, and the complexity of some programs can exacerbate the problem. This chapter describes the information problems facing prospective students as well as their consequences, drawing upon economic theory and empirical evidence.

Suggested Citation

  • Judith Scott-Clayton, 2012. "Information Constraints and Financial Aid Policy," NBER Working Papers 17811, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:17811
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Harald Beyer & Justine Hastings & Christopher Neilson & Seth Zimmerman, 2015. "Connecting Student Loans to Labor Market Outcomes: Policy Lessons from Chile," American Economic Review, American Economic Association, vol. 105(5), pages 508-513, May.
    2. Bleemer, Zachary & Zafar, Basit, 2018. "Intended college attendance: Evidence from an experiment on college returns and costs," Journal of Public Economics, Elsevier, vol. 157(C), pages 184-211.
    3. Dillon, Eleanor & Smith, Jeffrey A., 2015. "The Consequences of Academic Match between Students and Colleges," IZA Discussion Papers 9080, Institute for the Study of Labor (IZA).
    4. Nicholas W. Hillman & Erica Lee Orians, 2013. "Financial Aid's Role in Meeting State College Completion Goals," Education Finance and Policy, MIT Press, vol. 8(3), pages 349-363, July.
    5. Pistolesi, Nicolas, 2017. "Advising students on their field of study: Evidence from a French University reform," Labour Economics, Elsevier, vol. 44(C), pages 106-121.
    6. McGuigan, Martin & McNally, Sandra & Wyness, Gill, 2014. "Student Awareness of Costs and Benefits of Educational Decisions: Effects of an Information Campaign and Media Exposure," IZA Discussion Papers 8596, Institute for the Study of Labor (IZA).
    7. Martin McGuigan & Sandra McNally & Gill Wyness, 2016. "Student Awareness of Costs and Benefits of Educational Decisions: Effects of an Information Campaign," Journal of Human Capital, University of Chicago Press, vol. 10(4), pages 482-519.
    8. Justine Hastings & Christopher A. Neilson & Seth D. Zimmerman, 2015. "The Effects of Earnings Disclosure on College Enrollment Decisions," NBER Working Papers 21300, National Bureau of Economic Research, Inc.
    9. Frauke H. Peter & Vaishali Zambre, 2014. "Wer studiert, ist informiert?: Studienentscheidungen und Informationsdefizite," DIW Roundup: Politik im Fokus 35, DIW Berlin, German Institute for Economic Research.

    More about this item

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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