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ERIC Number: EJ1347958
Record Type: Journal
Publication Date: 2022
Pages: 17
Abstractor: As Provided
ISBN: N/A
ISSN: ISSN-0964-5292
EISSN: EISSN-1469-5782
Why Do German Students Reject Free Money?
Fidan, Muervet; Manger, Christian
Education Economics, v30 n3 p303-319 2022
Numerous eligible German students do not apply for heavily subsidized student aid (BAföG). Our theoretical model shows how imperfect information, risk aversion, debt aversion, and student income can incentivize rational students to abstain from an application. We use GSOEP data from 2001 to 2013 to simulate BAföG eligibility and find that in particular risk averse students with low income are discouraged if they have little information about the application procedure. Moreover, debt-averse students are more reluctant to apply. This suggests that a non-transparent and complicated student aid system disproportionally discourages poor students with little experience with the BAföG system.
Routledge. Available from: Taylor & Francis, Ltd. 530 Walnut Street Suite 850, Philadelphia, PA 19106. Tel: 800-354-1420; Tel: 215-625-8900; Fax: 215-207-0050; Web site: http://www.tandf.co.uk/journals
Publication Type: Journal Articles; Reports - Research
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Germany
Grant or Contract Numbers: N/A