Education Policy Research Center

Education Policy Seminar Series: Fall 2019
2019-11-06 14:00 - 15:00 UTC | Norman Hall 1-225
Lesley J. Turner, Ph.D.
Associate Professor of Economics
Vanderbilt University

Causes and Consequences of Student Loan Borrowing: Evidence from Multiple Field Experiments
Jointly sponsored with the UF Department of Economics

Education Policy Brown Bag: Dr. Dennis Kramer
2019-01-17 12:00 - 13:00
Presentation Title:
The Effects of Default Choice on Student Loan Borrowing: Experimental Evidence from a Public Research University
Abstract:
The complexities of the postsecondary financial aid system undermine the objectives of increasing student access and success. This is particularly true when students are making decisions to accept, modify, or decline their federally-guaranteed student loans. Given these complexities, we were interested in the role of defaults and choice architecture on student loan decision-making. Our experimental results indicate that the default choice significantly influenced student loan borrowing. Specifically, we find that student randomly assigned to the opt-in default choice borrowed approximately five percent lower total and unsubsidized loan amounts and were five percentage points less likely to borrow any loans or to accept their entire loan package. Heterogeneous effects were also explored with consistent treatment effects found across multiple undergraduate student groups. Finally, we fail to find that the default choice incentivized any substitution away from subsidized and unsubsidized federal loans toward private, Graduate PLUS, or Parent PLUS loans. Results indicate that creating an opt-in student loan choice environment may marginally increase optimal borrowing behaviors for undergraduate students.

Education Policy Seminar Series: Dr. Lindsay C. Page
2019-01-15 14:00 - 15:00 | Norman Hall 2-240
Title:
More than Dollars for Scholars: The Impact of the Dell Scholars Program on College Access, Persistence and Degree Attainment

Abstract:
Socioeconomic inequalities in college completion have widened over time. A critical question is how to support low-income and first-generation students to achieve college success. We investigate one effort, the Dell Scholars Program, which provides a combination of financial support and individualized advising to selected students who attend institutions throughout the US. Using two quasi-experimental analytic strategies, regression discontinuity and difference-in-differences with a matched comparison sample, we find consistent evidence that being selected as a Dell Scholar leads to substantially higher rates of bachelor’s degree completion within six years as well improvements on multiple other measures of college success.
