Search EdWorkingPapers

Search for EdWorkingPapers here by author, title, or keywords.

Taking It to the Limit: Effects of Increased Student Loan Availability on Attainment, Earnings, and Financial Well-Being

Growing reliance on student loans and repayment difficulties have raised concerns of a student debt crisis in the United States. However, 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, together with administrative schooling, earnings, and credit records, to identify the effects of increased student borrowing 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.

Keywords
Student Loans, Debt, Delinquency
Education level
Document Object Identifier (DOI)
10.26300/2np6-xq05

EdWorkingPaper suggested citation:

Black, Sandra E., Jeffrey T. Denning, Lisa J. Dettling, Sarena Goodman, and Lesley J. Turner. (). Taking It to the Limit: Effects of Increased Student Loan Availability on Attainment, Earnings, and Financial Well-Being. (EdWorkingPaper: -273). Retrieved from Annenberg Institute at Brown University: https://doi.org/10.26300/2np6-xq05

Machine-readable bibliographic record: RIS, BibTeX