The Effect of Credit Constraints on the College Drop-Out Decision A Direct Approach Using a New Panel Study

Todd Stinebrickner and Ralph Stinebrickner

No 13340, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: A serious difficulty in determining the importance of credit constraints in education arises because standard data sources do not provide a direct way of identifying which students are credit constrained. This has forced researchers to adopt a variety of indirect approaches. This paper differentiates itself from previous work by taking a direct approach for providing evidence about this issue which is made possible by unique longitudinal data that have been collected specifically for this type of purpose. Our results suggest that, while credit constraints likely play an important role in the drop-out decisions of some students, the large majority of attrition of students from low income families should be primarily attributed to reasons other than credit constraints.

JEL-codes: I2 I21 I3 J01 J24 (search for similar items in EconPapers)
Date: 2007-08
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Published as Ralph Stinebrickner & Todd Stinebrickner, 2008. "The Effect of Credit Constraints on the College Drop-Out Decision: A Direct Approach Using a New Panel Study," American Economic Review, American Economic Association, vol. 98(5), pages 2163-84, December.

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Journal Article: The Effect of Credit Constraints on the College Drop-Out Decision: A Direct Approach Using a New Panel Study (2008)
Working Paper: The Effect of Credit Constraints on the College Drop-Out Decision: A Direct Approach Using a New Panel Study (2007)
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