Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272501 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 15874
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
credit constraints
student debt
JEL: 
I20
I22
I21
Document Type: 
Working Paper

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