Graduation Incentives Through Conditional Student Loan Forgiveness
Published By: Institute for the Study of Labour(IZA) | Published Date: November, 01 , 2017The paper evaluates a Finish student financing reform which created substantial financial incentives for on-time graduation, and had the side effect of turning expected nominal interest rates on student loans strongly negative. The paper finds that both the timing of graduation and the take-up of loans remained unaffected by the reform. This is consistent with earlier findings in the literature that students do not seem to process financial incentives well when framed as a loan.
Author(s): Ulla Hämäläinen, Kristian Koerselman, Roope Uusitalo | Posted on: Dec 01, 2017 | Views() | Download (368)