This paper studies the link between credit availability and student loan repayment using administrative federal student … loan data. We demonstrate that expansions and contractions in federal student loan credit to institutions with high default … late 1980s. Credit access was subsequently tightened through strict institutional and student accountability measures. This …

Information asymmetries are known in theory to lead to inefficiently low credit provision, yet empirical estimates of … to estimate welfare losses arising from asymmetric information in the market for online consumer credit. Building on … price distortions, we find only small overall welfare losses, particularly for high-credit-score borrowers …