Macro- and Microeconomic Risks of Student Loans in an International Context

Máté Vona ()
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Máté Vona: Faculty of Economics, University of Debrecen, Hungary

Acta Oeconomica, 2015, vol. 65, issue 4, 629-649

Abstract: The risk of individual investment in higher education is not a well-researched topic compared to the rate of return to education. In many countries tuition fees are low, but there is a possibility to borrow for investment in education. This can lead to irresponsible investment behaviour. The paper will show that the student loan market is too small to cause a macroeconomic crisis, but that it is a market with many stakeholders and irresponsible behaviour should not be encouraged. With the examination of a Hungarian sample, it can be concluded that in the context of higher education, signs of rational investment behaviour can be found. The risks of post-secondary studies are not yet fully understood and measured, and for this reason further research is suggested.

Keywords: economics of education; higher education finance; student loan; income-contingent loan; Hungary (search for similar items in EconPapers)
JEL-codes: G15 I22 (search for similar items in EconPapers)
Date: 2015
Note: This research was supported in the framework of the TÁMOP-4.2.4.A/2-11/1-2012-0001 0001 “National Excellence Program – Elaborating and operating an inland student and researcher personal support system” and co-financed by the European Social Fund.
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