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financial aid awards was replaced with grants. We use this natural experiment to identify the causal effect of student debt on … explanations are that young workers are credit constrained or that they are averse to holding debt. We find suggestive evidence … credit constraints than with debt aversion. …
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In this paper, I provide an economic perspective on policy issues related to student debt in the United States. I lay out the economic rationale for government provision of student loans, summarize time trends in student borrowing, describe the US loan market, then turn to topics central to the...
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