Non-take-up of student financial aid—A microsimulation for Germany. Issue 1 (2nd January 2019)

• Record Type: Journal Article
• Authors: Herber, Stefanie P.; Kalinowski, Michael
• Is Part Of: Education economics. Volume 27:Issue 1(2019)
• Page Start: 52
• Page End: 74
• Publication Date: 2019-01-02
• Subjects: Non-take-up of social benefits -- welfare programme participation -- federal student aid -- microsimulation -- behavioural economics -- debt aversion; I22 -- I23 -- I24 -- I38; Education -- Economic aspects -- Periodicals; 338.4737
• DOI: 10.1080/09645292.2018.1490698
• Languages: English
• ISSNs: 0964-5292

Abstract

ABSTRACT: We estimate the percentage of eligible students who do not take up their federal need-based student financial aid entitlements in a microsimulation model for the German Socio-Economic Panel Study 2002–2013. We find that about 40% of the eligible low-income students do not take up their entitlements. Non-take-up is inversely and rather inelastically related to the level of benefits. We investigate possible reasons for non-take-up, accounting for potential sample selection and endogeneity issues; and discuss policy implications.