Estimating the Value of Higher Education Financial Aid: Evidence from a Field Experiment
Christian Belzil (),
Arnaud Maurel () and
CIRANO Working Papers from CIRANO
Using data from a Canadian field experiment on the financial barriers to higher education, we estimate the distribution of the value of financial aid for prospective students. We find that a considerable share of prospective students perceive significant credit constraints. Most of the individuals are willing to pay a sizable interest premium above the prevailing market rate for the option to take up a loan, with a median interest rate wedge equal to 6.8 percentage points for a $1,000 loan. The willingness-to-pay for financial aid is highly heterogeneous across students, with preferences and in particular discount factors playing a key role in accounting for the variation.
Keywords: Higher Education; Financing; Time and Risk Preferences; Field Experiment (search for similar items in EconPapers)
JEL-codes: J22 J23 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp
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Working Paper: Estimating the Value of Higher Education Financial Aid: Evidence from a Field Experiment (2020)
Working Paper: Estimating the Value of Higher Education Financial Aid: Evidence from a Field Experiment (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2020s-38
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