Non-take-up of student financial aid—A microsimulation for Germany.
- Resource Type
- Article
- Authors
- Herber, Stefanie P., ; Kalinowski, Michael
- Source
- Education Economics; Feb2019, Vol. 27 Issue 1, p52-74, 23p, 3 Charts, 6 Graphs
- Subject
- Student financial aid
Low-income students
Educational finance
Teenagers
Secondary education
Panel analysis
Simulation methods & models
- Language
- ISSN
- 09645292
We estimate the percentage of eligible students who do not take up their federal need-based student financial aid entitlements in a microsimulation model for the German Socio-Economic Panel Study 2002-2013. We find that about 40% of the eligible low-income students do not take up their entitlements. Non-take-up is inversely and rather inelastically related to the level of benefits. We investigate possible reasons for non-take-up, accounting for potential sample selection and endogeneity issues; and discuss policy implications. [ABSTRACT FROM AUTHOR]