Experimental Design to Understand the Student Loan Decision: A Methodological Note

Abstract

The purpose of this study was to introduce a relatively new methodology of combining experimental design and survey data in the context of personal financial decision making. The NC2172 research team collected data online while manipulating framing effects, aspirations, and gender on hypothetical student loan decisions. The paper describes the development of the experimental conditions, demonstrates the effectiveness of the manipulations, and explains the importance and structure of random assignment of respondents across conditions. It seeks to guide future attempts utilizing experimentally designed online surveys by providing potential benefits and challenges.

Perceived Value of College as an Investment in Human and Social Capital: Views of Generations X and Y

“…After receiving Institution Review Board permission, the researchers contracted with Survey Sampling International (SSI) to survey the intended sample (Cho et al., ). SSI provides Internet access and a small financial incentive to members of the panel.…”

A Review of Best Papers in Personal Finance: 2008–2020

“…Cho et al. (2016) used mixed methods, developed an experimental online survey by manipulating framing effects, aspirations, and gender on a hypothetical student loan, and tested whether bias existed in the survey results through quantitative analysis, such as t ‐test and ANOVA. Their results suggest that experimental design and randomization were appropriate.…”

“…In 2016, another team led by Cho investigated factors related to educational choice. The factors included: return on investment, aspiration, and gender (Cho et al, 2016). Lee et al (2018) explored the financial burden of student loan holders.…”

Student Loan Decision Making: Experience as an Anchor

“…Survey participants fell within three main categories of interest in this study: those without a college degree, those with a college degree and no student loans, and those with a college degree and student loan. For more details on the survey methodology and experimental design, see Cho et al ( 2016 ).…”