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In higher education, pure credit market funding leads to underinvestment due to insufficient risk pooling, while pure income-contingent loan funding leads to overinvestment. We analyze whether funding diversity – a market structure in which credit markets coexist alongside income-contingent...
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have increased. We discuss these trends as well as recent evidence on the extent to which students are able to obtain … student credit arrangements that balance three important objectives: (i) providing credit for students to access college and …
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from a random sample of undergraduate students in the United States and implement a research design that instruments for … tuition with relatively large changes to the tuition of students who enrolled at the same school in different cohorts. We find … among poorer, credit-constrained students. Thus, the relatively large increases in the price of education in the United …
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