American Economic Review Vol. 113 No. 12 2023
Taking It to the Limit: Effects of Increased Student Loan Availability on Attainment, Earnings, and Financial Well-Being
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 data-sets 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
- 10.1257/aer.20210926
- Volume
- 113
- Issue
- 12
- Pages
- 3357-3400
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref