A, Ionescu Felicia - In: The B.E. Journal of Macroeconomics 8 (2008) 1, pp. 1-37
I study repayment behavior for college graduates who borrow under the U.S. Federal Student Loan Program to finance higher education. I develop a dynamic model with uninsurable shocks to earnings and student loan rates that explains the repayment pattern in U.S. data: college graduates with lower...