TY  - RPRT
        AU  - Belzil, Christian
AU  - Maurel, Arnaud
AU  - Sidibé, Modibo
        TI  - Estimating the Value of Higher Education Financial Aid: Evidence from a Field Experiment
        PY  - 2020/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13096
        UR  - https://www.iza.org/index.php/publications/dp13096
        AB  - 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.
        KW  - time and risk preferences
KW  - higher education financing
KW  - field experiment
        ER  -