%0 Report
        %A Belzil, Christian
%A Maurel, Arnaud
%A Sidibé, Modibo
        %T Estimating the Value of Higher Education Financial Aid: Evidence from a Field Experiment
        %D 2020
        %8 2020 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 13096
        %U https://www.iza.org/index.php/publications/dp13096
        %X Using data from a Canadian field experiment on the financial barriers to higher education, we estimate the distribution of the value of financial aid for prospective students. Our results point out that a considerable share of prospective students are affected by credit constraints. We find that most of the individuals are willing to pay a sizable interest premium above the prevailing market rate for the option to take up a loan, with a median interest rate wedge equal to 6.8 percentage points for a $1,000 loan. The willingness-to-pay for financial aid is highly heterogeneous across students, with preferences and in particular discount factors, playing a key role in accounting for this variation.
        %K time and risk preferences
%K higher education financing
%K field experiment