Graduation Incentives Through Conditional Student Loan Forgiveness

We evaluate a Finnish 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. We find 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.

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Year of publication:	2017
Authors:	Hämäläinen, Ulla ; Koerselman, Kristian ; Uusitalo, Roope
Publisher:	Bonn : Institute of Labor Economics (IZA)
Subject:	incentives \| student finance \| higher education \| pace of studies \| student loans

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Series:	IZA Discussion Papers ; 11142
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1009185640 [GVK] hdl:10419/174052 [Handle] RePEc:iza:izadps:dp11142 [RePEc]
Classification:	I22 - Educational Finance
Source:	EconStor

Persistent link: https://www.econbiz.de/10011786992