Graduation Incentives Through Conditional Student Loan Forgiveness

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 11142

Classification and Topics

• Classification: Wirtschaft ; Educational Finance; Financial Aid
• Subject: incentives ; student finance ; higher education ; pace of studies ; student loans

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hämäläinen, Ulla ; Koerselman, Kristian ; Uusitalo, Roope
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/174052
• Last update: 10.03.2025, 11:41 AM CET