Ionescu, Felicia; Ionescu, Marius - Becker Friedman Institute for Research in Economics, … - 2012
default option resembles a bankruptcy filing under Chapter 7 and the other type of credit mimics student loans in the U.S. and … borrowers prefer default on student loans rather than on credit card debt. Our quantitative analysis shows that the increase in … borrowers with large student loans smooth out consumption and reduce student loan default. We find that the recent 2010 reform …