Government financed student loan debt of $1.3 trillion has grown 15% a year for over a decade as tuition and other college costs have risen at a multiple of the inflation rate. Problematic are defaults and income-based repayment arrangements with their partial loan forgiveness. Applied to this...

This paper studies the importance of dynamic earnings modeling for the design of income contingent student loans (ICLs). ICLs have been shown to be theoretically optimal in terms of efficiency in the presence of risk aversion, adverse selection and moral hazard, and have attractive equity...

There is evidence of a large and growing student debt burden over the last decade. Previous research has shown that the presence of student debt jeopardized the short-term financial wealth of U.S. households during the Great Recession. We examine the effects of student loan use on the wealth of...

For-profit providers have become an important fixture of U.S. higher education markets. Students who attend for-profit institutions take on more educational debt and are more likely to default on their student loans than those attending similarly selective public schools. Because for-profits...

Effective consumer financial education provides relevant information to meet special needs of targeted audiences. The purpose of this study is to compare financial capability among three types of student loan holders, who completed, did not complete, and are enrolled in a higher education...

The collapse in home prices during the Great Recession triggered a sharp drop in consumer demand by households, leading to massive employment losses. This paper examines the implications of these labor market shocks for the dramatic rise in student loan defaults, which originated during this...

How do households adjust savings and consumption in response to liquidity from debt relief? I study this question using policy variation induced by federal student loan forbearance in the 2020 CARES Act and an individual-level panel of daily financial transactions for 315,000 borrowers....

This paper studies the importance of dynamic earnings modeling for the design of income contingent student loans (ICLs). ICLs have been shown to be theoretically optimal in terms of efficiency in the presence of risk aversion, adverse selection and moral hazard, and have attractive equity...