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Field
Intervention (Public)
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Before
This project involves three experimental sites: community colleges located within Ohio, Illinois, and Arizona. At each site, the intervention involves changes in the presentation of federal Stafford Loan offers. Students in the control group at each site will be presented with loan offers according to each institution's existing practices. This intervention will not affect students’ access to loans; in all cases students will be completely free to opt in, opt out, or change their loan amount in accordance with the rules of the student loan program. Additionally, upon completing an application for federal student aid – a prerequisite for receiving federal student aid – students are notified by the US Department of Education of their eligibility for federal loans. Thus, all students in our study will also be informed of their loan eligibility.
At the Ohio site, dependent students in the control group will receive a financial aid award letter listing the maximum subsidized federal loan they are eligible for, independent students in the control group will receive a financial aid award letter listing the maximum subsidized federal loan they are eligible for and a $4000 unsubsidized loan, and the treatment group will be presented with a loan amount of zero regardless of dependency status.
At the Illinois site, students in the control will be presented with a loan amount of zero on their financial aid award letters, while students in the treatment group will receive an award letter listing the maximum subsidized federal loan they are eligible for.
The Arizona site will involve two treatment arms. This institution uses an online system that asks students whether they want to borrow before displaying the financial aid package. Students who select “No” are then shown a financial aid package with $0 in federal loan aid. For those who select “Yes,” the institution lists a “base loan amount”. The first treatment arm will include a blank field next to the line on the award package for loan aid that the student will be prompted to fill in with his or her preferred loan amount (including $0). The second treatment arm will feature a blank loan offer as well, but it will also prompt students to complete a short budgeting worksheet prior to choosing a loan amount. Students in the control group who select "yes" when asked if they would like to borrow will be randomly assigned to receive an award package with a base amount that is randomized between 50% and 150% of the current amounts (i.e., $1,000 or $3,000/year for dependent students and $2,000 or $4,000/year for independent students).
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After
This project involves three experimental sites: community colleges located within Ohio, Illinois, and Arizona. At each site, the intervention involves changes in the presentation of federal Stafford Loan offers. Students in the control group at each site will be presented with loan offers according to each institution's existing practices. This intervention will not affect students’ access to loans; in all cases students will be completely free to opt in, opt out, or change their loan amount in accordance with the rules of the student loan program. Additionally, upon completing an application for federal student aid – a prerequisite for receiving federal student aid – students are notified by the US Department of Education of their eligibility for federal loans. Thus, all students in our study will also be informed of their loan eligibility.
At the Ohio site, dependent students in the control group will receive a financial aid award letter listing a combination of subsidized and unsubsidized loans (determined by student need) equal to $3500 (first-year students) or $4500 (second-year students). Independent students in the control group will receive a financial aid award letter listing the above loan amount and an additional $4000 in unsubsidized loan aid, Students assigned to the treatment group will be presented with a loan amount of zero regardless of student level or dependency status.
At the Illinois site, students in the control will be presented with a loan amount of zero on their financial aid award letters, while students in the treatment group will receive an award letter listing the maximum subsidized federal loan they are eligible for.
The Arizona site will involve two treatment arms. This institution uses an online system that asks students whether they want to borrow before displaying the financial aid package. Students who select “No” are then shown a financial aid package with $0 in federal loan aid. For those who select “Yes,” the institution lists a “base loan amount”. The first treatment arm will include a blank field next to the line on the award package for loan aid that the student will be prompted to fill in with his or her preferred loan amount (including $0). The second treatment arm will feature a blank loan offer as well, but it will also prompt students to complete a short budgeting worksheet prior to choosing a loan amount. Students in the control group who select "yes" when asked if they would like to borrow will be randomly assigned to receive an award package with a base amount that is randomized between 50% and 150% of the current amounts (i.e., $1,000 or $3,000/year for dependent students and $2,000 or $4,000/year for independent students).
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Field
Experimental Design (Public)
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Before
At each of the three sites, students who are at least 18 years old who have submitted a FAFSA will be included in the intervention. Randomization will be stratified by student type (e.g., new versus returning), student level (e.g., first- versus second-year, determined by cumulative credits earned including transfer credits), outstanding loan debt, and expected family contribution.
Starting in March 2015, each school will provide the researchers with a list of students who have completed their federal student aid application, and thus are ready to have their award package completed. This list will include a research ID as well as the relevant variables for determining which stratum a student belongs to. The research team will conduct the random assignment and return to each school a list of research ids and the relevant treatment assignment. This procedure will take place on a regular basis.
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After
At each of the three sites, students who are at least 18 years old who have submitted a FAFSA will be included in the intervention. Randomization will be stratified by student type (e.g., new versus returning), student level (e.g., first- versus second-year, determined by cumulative credits earned including transfer credits), outstanding loan debt, expected family contribution, dependency status, and unmet need (which determines eligibility for subsidized loan aid).
Starting in March 2015, each school will provide the researchers with a list of students who have completed their federal student aid application, and thus are ready to have their award package completed. This list will include a research ID as well as the relevant variables for determining which stratum a student belongs to. The research team will conduct the random assignment and return to each school a list of research ids and the relevant treatment assignment. This procedure will take place on a regular basis.
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