College on Credit: A Multilevel Analysis of Student Loan Default

Hillman, Nicholas

doi:10.1353/rhe.2014.0011

Cited by 85 publications

(96 citation statements)

References 39 publications

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“…Society also pays when completion rates are low. Taxpayers, who provide the majority of funding for community colleges, subsidize seats in classes for students who never earn the credentials needed to power the state's workforce, and students who do not complete degrees are much more likely to default on their student loans than students who graduate (Hillman, 2014).…”

Section: Introductionmentioning

confidence: 99%

The Effects of Structured Transfer Pathways in Community Colleges

Baker

2016

Educational Evaluation and Policy Analysis

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Section: Introductionmentioning

confidence: 99%

The Effects of Structured Transfer Pathways in Community Colleges

Baker

2016

Educational Evaluation and Policy Analysis

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“…Similarly, Steiner and Teszler () estimated that students who graduated from college had a 2% chance of default, while those who did not graduate had a 14% likelihood of default. Hillman () reviewed factors associated with student loan default and found that the primary factors were demographics (race, age, and gender), socioeconomic factors, academic experiences, postcollege employment, and institutional characteristics.…”

Section: Review Of Literaturementioning

confidence: 99%

Exploring Financial Burdens of Student Loan Holders in the United States

Lee

Kim

Hong

2018

Family & Consum Sci Res J

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This study examined the profile of student loan holders in the United States. Data were extracted from the pooled dataset of the 2010 and 2013 Survey of Consumer Finances. The sample included 2,161 households with outstanding student loans. The analyses focused on: (1) amount of the outstanding balance of the student loan; (2) loan payment‐to‐income ratio, and (3) loan delinquency. Factors that were positively related to the amount of student loan debt included: education, income, and homeownership. Factors that were positively related to the loan payment‐to‐income ratio included: age, education, presence of children between aged 18 and 25, net worth, and self‐employment. In regard to loan delinquency, households with credit constraints were more likely to be delinquent on their student loans. Interestingly, education, net worth, and homeownership were negatively related to being delinquent on student loans.

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“…The strand of this literature which deals with default rates is the most relevant to the current study. Dynarski (1994) and Hillman (2014) examine the characteristics which correlate with eventual default on their loans, nding unsurprisingly that borrowers from low-income households, college dropouts, and those with the lowest post-college earnings were the most likely to default on their student loans. Ionescu (2009) tests the impact of various student loan policies (e.g.…”

Section: Previous Literaturementioning

confidence: 99%

Risk-sharing and student loan policy: Consequences for students and institutions

Webber

2017

Economics of Education Review

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu This paper examines the potential costs and benefits associated with a risk-sharing policy imposed on all higher education institutions. Under such a program, institutions would be required to pay for a portion of the student loans among which their students defaulted. I examine the predicted institutional responses under a variety of possible penalties and institutional characteristics using a straightforward model of institutional behavior based on monopolistic competition. I also examine the impact of a risk-sharing program on overall economic efficiency by estimating the returns to scale for undergraduate enrollment (as well as other outputs) among each of ten educational sectors. I find that even a relatively small incentive effect of a risk-sharing would lead to a substantial decline in overall student debt. There is considerable heterogeneity across sectors, with 4-year for-profit institutions accounting for the majority of the savings. My estimates suggest that a risk-sharing program would induce a modest tuition increase, but that there is unlikely to be a substantial loss of economic efficiency in terms of costs due to a reallocation of students across sectors. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S JEL Classification:I22

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College on Credit: A Multilevel Analysis of Student Loan Default

Cited by 85 publications

References 39 publications

The Effects of Structured Transfer Pathways in Community Colleges

The Effects of Structured Transfer Pathways in Community Colleges

Exploring Financial Burdens of Student Loan Holders in the United States

Risk-sharing and student loan policy: Consequences for students and institutions

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