Educational debt burden and career choice: Evidence from a financial aid experiment at NYU law school

Journal Article (Journal Article)

This paper examines the influence of psychological responses to debt on career choices from an experiment in which alternative financial aid packages were assigned by lottery to a set of law school admits. The packages had equivalent monetary value, but one required the student to take on a loan that would be paid for by the school if he worked in public interest law, while the other covered tuition as long as the student worked in public interest law. If he did not, the student would be required to reimburse the school. Tuition assistance recipients have a 36 to 45 percent higher public interest placement rate and, when lottery results were announced before enrollment, were twice as likely to enroll.

Full Text

Duke Authors

Cited Authors

  • Field, E

Published Date

  • January 1, 2009

Published In

Volume / Issue

  • 1 / 1

Start / End Page

  • 1 - 21

Electronic International Standard Serial Number (EISSN)

  • 1945-7790

International Standard Serial Number (ISSN)

  • 1945-7782

Digital Object Identifier (DOI)

  • 10.1257/app.1.1.1

Citation Source

  • Scopus