Working Paper: NBER ID: w17811
Authors: Judith Scott-Clayton
Abstract: One justification for public support of higher education is that prospective students, particularly those from underprivileged groups, lack complete information about the costs and benefits of a college degree. Beyond financial considerations, students may also lack information about what they need to do academically to prepare for and successfully complete college. Yet until recently, college aid programs have typically paid little attention to students' information constraints, and the complexity of some programs can exacerbate the problem. This chapter describes the information problems facing prospective students as well as their consequences, drawing upon economic theory and empirical evidence.
Keywords: financial aid; information constraints; higher education; public policy
JEL Codes: I22; I23; I24; I28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| grant aid (F35) | college enrollment (I23) |
| financial aid complexity (I22) | students' understanding of eligibility (I24) |
| personal assistance in completing financial aid applications (I22) | college entry rates (I23) |