Black, Sandra E.
[VerfasserIn];
Denning, Jeffrey T.
[VerfasserIn];
Dettling, Lisa J.
[VerfasserIn];
Goodman, Sarena
[VerfasserIn];
Turner, Lesley J.
[VerfasserIn]
Taking it to the limit
: effects of increased student loan availability on attainment, earnings, and financial well‐being
Beschreibung:
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.