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

Authors
Publication date 2012
Journal Economics of Education Review
Volume | Issue number 31 | 1
Pages (from-to) 33-44
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
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.
Document type Article
Language English
Published at https://doi.org/10.1016/j.econedurev.2011.08.009
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