UNDERSTANDING THE EVOLUTION OF STUDENT LOAN BALANCES AND REPAYMENT BEHAVIOR: DO INSTITUTION TYPE AND DEGREE MATTER?

To help inform the policy debate regarding student debt, the authors analyze the evolution of student loan balances and repayment behavior by institution type and degree program. They find that during the 2000-10 period, student loan balances at college exit increased and repayment behavior deterior...

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Bibliographic Details
Published in:Economic Policy Review - Federal Reserve Bank of New York 2019-12, Vol.25 (1), p.35-II
Main Authors: Brown, Meta, Chakrabarti, Rajashri, van der Klaauw, Wilbert, Zafar, Basit
Format: Article
Language:English
Subjects:
Academic degrees
Associate degrees
Baccalaureate degrees
Behavior
Borrowing
Certificates
Debt
Delinquency
Economic models
Education
Evolution (Biology)
Family income
Human capital
Institutions
Loans
Payment
Polls & surveys
Private sector
Profits
Student debt
Student loans
Students
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Summary:To help inform the policy debate regarding student debt, the authors analyze the evolution of student loan balances and repayment behavior by institution type and degree program. They find that during the 2000-10 period, student loan balances at college exit increased and repayment behavior deteriorated for those pursuing undergraduate certificates and associate's and post-bachelor's degrees at private institutions relative to those pursuing such degrees at public institutions. Declines in repayment behavior at private institutions were sharpest for associate's degrees and undergraduate certificates. Further, the results suggest that the relative worsening in loan performance at private institutions stemmed primarily from student loans extended for study at for-profit institutions.
ISSN:1932-0426
1932-0604