Default and Repayment among Baccalaureate Degree Earners

Lance Lochner and Alexander Monge-Naranjo

No 2014-003, Working Papers from Human Capital and Economic Opportunity Working Group

Abstract: More than low default rates, lenders are interested in the expected return on their loans. In this paper, we consider a number of other measures of repayment and nonpayment that are likely to be of direct interest to lenders. Using data from the Baccalaureate and Beyond Longitudinal Study, we document repayment and nonpayment outcomes 10 years after graduation for American students receiving BA/BS degrees in 1993. We estimate differences in these outcomes across individual/family background characteristics, college major, type of institution, the amount borrowed, and post-graduation income. A key contribution is our analysis of the following outcomes in addition to student loan default rates: the fraction of the original undergraduate loan amount repaid as of 2003, nonpayment rates (including deferment and forbearance as well as default), and the fraction of original undergraduate loan amounts on which borrowers defaulted or are currently not repaying.

Keywords: student loans; default; forbearance and deferment; labor market outcomes; return to lenders (search for similar items in EconPapers)
JEL-codes: H52 I21 I23 I28 (search for similar items in EconPapers)
Date: 2014-01
Note: M
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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http://humcap.uchicago.edu/RePEc/hka/wpaper/Lochne ... ent-baccalaureat.pdf First version, 1/28/2014 (application/pdf)

Related works:
Working Paper: Default and Repayment Among Baccalaureate Degree Earners (2015)
Working Paper: Default and Repayment Among Baccalaureate Degree Earners (2014)
Working Paper: Default and Repayment Among Baccalaureate Degree Earners (2014)
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