Taking It to the Limit: Effects of Increased Student Loan Availability on Attainment, Earnings, and Financial Well-Being
Year: 2020
Type: report
Study design: Observational Study
Abstract: Growing reliance on student loans and repayment difficulties have raised concerns of a student debt crisis in the United States, but little is known about the effects of student borrowing on human capital and long run financial well being.We use variation induced by recent expansions in federal loan limits combined with administrative datasets to identify the effects of increased access to student loans on credit constrained students' educational attainment, earnings, debt, and loan repayment.Increased student loan availability raises student debt and improves degree completion, later life earnings, and student loan repayment while having no effect on homeownership or other types of debt.
DOI: 10.3386/w27658
Authors: Sandra Black, Jeffrey Denning, Lisa Dettling, Sarena Goodman, Lesley Turner
Institutions: Brigham Young University, University of Southern California, National Bureau of Economic Research, University of Pittsburgh, Duke University, Vanderbilt University, San Diego State University, Federal Reserve Board of Governors, University of Chicago, Federal Reserve Bank of New York, University of Virginia, Columbia University, University of Pennsylvania
Language: English
Subfield: Education
Field: Social Sciences
Domain: Social Sciences
SDG: Quality education
Open Access status: green
OpenAlex ID: W3048194733