In recent years, the proportion of students facing a binding constraint on government student loans has grown. This has … investment. A critical aspect of the private market for student loans is that loan terms must reflect students' risk of default …

). Moreover, for students attending private universities, a higher number of loans received increased the probability of a dropout … decision, and students from middle-income households had a higher probability of being overdue than students from low …. Furthermore, providing opportunities for students to find various jobs and introducing a rating system for defaulters are two …

which their students defaulted. I examine the predicted institutional responses under a variety of possible penalties and … economic efficiency in terms of costs due to a reallocation of students across sectors. …