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

Stefanie P. Herber and Michael Kalinowski

Education Economics, 2019, vol. 27, issue 1, 52-74

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.

Date: 2019
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DOI: 10.1080/09645292.2018.1490698

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