Loans , Insurance and Failures in the Credit Market for Students

@inproceedings{Rey2008LoansI,
  title={Loans , Insurance and Failures in the Credit Market for Students},
  author={Elena Del Rey and Bertrand Verheyden},
  year={2008}
}
Whereas public student loans are often income contingent, private banks typically offer pure loans, or don’t offer loans at all. In order to provide a rationale for these observations, we present a model with perfectly competitive banks and risk averse students who have private information on their ability to learn. We show that the combination of ex-post… CONTINUE READING