The effects of state performance funding policies on student loan debt

Robert Kelchen, Justin Ortagus, Kelly Rosinger and Alex Cassell

Economics of Education Review, 2022, vol. 91, issue C

Abstract: Performance-based funding (PBF) policies are an increasingly common way for states to tie funding for public colleges and universities to student outcomes. Yet amid growing concerns about student debt, the potential exists for PBF to affect student debt and ability to repay loans in both intended and unintended ways. In this paper, we use the first comprehensive dataset of PBF policies to examine the effects of PBF on student debt. We found no effects of PBF on student debt in the two-year sector and some evidence of increased debt among university students from more affluent families.

Keywords: Performance funding; Accountability; Student debt; Higher education policy (search for similar items in EconPapers)
JEL-codes: I22 I23 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:91:y:2022:i:c:s0272775722001017

DOI: 10.1016/j.econedurev.2022.102328

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