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

Published in: Economics of Education Review 31 (1). (2012). 33-44. (with Adam S. Booij and Edwin Leuven )

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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