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Helping Students Make Informed Borrowing Decisions with Career Outcome Information

Last registered on May 14, 2025
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Pre-Trial

Trial Information

General Information

Title
Helping Students Make Informed Borrowing Decisions with Career Outcome Information
RCT ID
AEARCTR-0015955
Initial registration date
May 07, 2025

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
May 14, 2025, 10:35 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

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Primary Investigator

Name
Gerald Daniels
Affiliation
Howard University
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Other Primary Investigator(s)

PI Name
Gerald Daniels
PI Affiliation
Howard University
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PI Name
Damon Jones
PI Affiliation
University of Chicago
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PI Name
Brianna Youngblood
PI Affiliation
University of Chicago
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PI Name
Lesley Turner
PI Affiliation
University of Chicago
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Additional Trial Information

Status
In development
Start date
2025-05-06
End date
2028-05-01
Keywords
Education, Finance & Microfinance
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Student loans can increase access to higher education, support college persistence and completion, and enable students to obtain high-earning jobs after college. But deciding whether and how much to borrow is a complicated endeavor filled with uncertainty, including over the returns to educational investment, which may vary by race and other attributes. We will test the hypothesis that providing accurate and timely information about future earnings has an effect on students’ borrowing decisions and, as a result, their academic outcomes. To do so, we will conduct a three-part pilot study at a university with approximately 9,000 undergraduates. We first will conduct a survey to understand students’ earnings expectations. Second, we will run an information experiment in which students will be randomly assigned to a control group and a treatment group that receives information on typical earnings for past students in their major, followed by a post-intervention survey to reassess earnings expectations. Our study will demonstrate how an expected earnings nudge will impact borrowing decisions, academic choices, and attainment.
External Link(s)

Registration Citation

Citation
Daniels, Gerald et al. 2025. "Helping Students Make Informed Borrowing Decisions with Career Outcome Information." AEA RCT Registry. May 14. https://doi.org/10.1257/rct.15955-1.0
Sponsors & Partners

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Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2025-06-02
Intervention End Date
2025-12-20

Primary Outcomes

Primary Outcomes (end points)
amount borrowed (student loans), GPA, reenrollment, credits earned, bachelor's degree completion, student loan delinquency, student loan default.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We will run an information experiment in which students may receive a nudge on major-specific expected earnings after college. All students who have completed an application for federal student aid will be assigned to a treatment or control group. Students in the treatment group will receive an email reminding them that they can access their financial aid package and information on the earnings of past graduates in their same major using data from the U.S. Department of Education's College Scorecard. Students in the control group will receive an email reminding them they can access their financial aid package and no additional information on expected earnings.
Experimental Design Details
Not available
Randomization Method
Randomization done in office by a computer. Within each major/class standing block, students will be randomized with a simple random number generator of equal 50% probability.
Randomization Unit
Student-level randomization
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
9000 students.
Sample size: planned number of observations
9000 students.
Sample size (or number of clusters) by treatment arms
4500 students assigned to treatment, 4500 students assigned to control.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
The power calculations in this pilot estimate the minimum detectable effects (MDEs) for several outcomes, assuming 9,000 participants across 35 academic major clusters, a 5% significance level, and 80% power. The study is powered to detect changes in the amount borrowed as small as $7 to $21, GPA changes of 0.03 to 0.09 points, and credits earned of 0.5 to 1.4. For longer-term outcomes, the study can detect changes in completion and default rates of 2 to 5 percentage points, which aligns with effect sizes in similar prior studies.
Supporting Documents and Materials

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IRB

Institutional Review Boards (IRBs)

IRB Name
Howard University Office of Regulatory Research Compliance
IRB Approval Date
2025-05-02
IRB Approval Number
IRB-2025-1724
Analysis Plan