Taking It to the Limit: Effects of Increased Student Loan Availability on Attainment, Earnings, and Financial Well-Being

Sandra Black, Jeffrey Denning, Lisa Dettling, Sarena Goodman and Lesley Turner

No 27658, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: D14 H52 H81 I21 I22 I23 I26 I28 J24 (search for similar items in EconPapers)
Date: 2020-08
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Published as Sandra E. Black & Jeffrey T. Denning & Lisa J. Dettling & Sarena Goodman & Lesley J. Turner, 2023. "Taking It to the Limit: Effects of Increased Student Loan Availability on Attainment, Earnings, and Financial Well-Being," American Economic Review, vol 113(12), pages 3357-3400.

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Journal Article: Taking It to the Limit: Effects of Increased Student Loan Availability on Attainment, Earnings, and Financial Well-Being (2023)
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