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Student Loan Choice Overload / Benjamin M. Marx, Lesley J. Turner.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Marx, Benjamin M.
Contributor:
National Bureau of Economic Research.
Turner, Lesley J.
Series:
Working Paper Series (National Bureau of Economic Research) no. w25905.
NBER working paper series no. w25905
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2019.
Summary:
What influences college student borrowing? In a field experiment with a large community college, we send emails about federal student loans to students who have received information about financial aid but have not made a borrowing decision. A treatment reminding students that they need not borrow the maximum amount of available loan aid does not affect borrowing. Treatments referencing amounts borrowed by recent graduates shift students from borrowing the maximum amount to not borrowing. Consistent with the hypothesis that students experience choice overload when observing multiple dollar amounts, the response is largest among low-performing students and arises from inaction.
Notes:
Print version record
May 2019.

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