Predicting Student Loan Defaults

Flint, Thomas A.

doi:10.1080/00221546.1997.11778986

Cited by 41 publications

(40 citation statements)

References 26 publications

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“…Column (5) in Table 6 suggests that this is not explained by differences in borrowing or post-school earnings.…”

Section: A Multivariate Analysis Of Student Loan Repaymentmentioning

confidence: 97%

“…The lack of college dropouts and students with less than four-year degrees is unfortunate, since previous research shows that repayment problems are most common among these individuals. 5 Still, we find that many students who graduated from college in 1992-93 have experienced repayment problems.…”

Section: Data: the Baccalaureate And Beyond Longitudinal Studymentioning

confidence: 99%

“…About one-quarter of this difference is explained by choice of college major (see column (2)) and another half by differences in post-school earnings (see column (5) and recall that initial borrowing amounts were the same for men and women as shown in Table 5). Most strikingly, the share of debt still owed was 22 to 27 percentage points higher for blacks than for whites.…”

Section: A Multivariate Analysis Of Student Loan Repaymentmentioning

confidence: 99%

“…Unfortunately, much of this discussion is occurring amidst scant systematic evidence on the determinants of student loan repayment and default, especially for recent cohorts. Dynarski (1994), Flint (1997), and Volkwein et al (1998) Minorities, students from low-income families, and college dropouts all tend to have higher default rates, as do students attending two-year and for-profit private institutions. Default is also more likely for those with high debt levels and low post-school earnings.…”

Section: Introductionmentioning

confidence: 99%

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Default and Repayment Among Baccalaureate Degree Earners

Lochner¹,

Monge‐Naranjo²

2014

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More than low default rates, lenders are interested in the expected return on their loans. In this paper, we consider a number of other measures of repayment and nonpayment that are likely to be of direct interest to lenders. Using data from the Baccalaureate and Beyond Longitudinal Study, we document repayment and nonpayment outcomes 10 years after graduation for American students receiving BA/BS degrees in 1993. We estimate differences in these outcomes across individual/family background characteristics, college major, type of institution, the amount borrowed, and post-graduation income. A key contribution is our analysis of the following outcomes in addition to student loan default rates: the fraction of the original undergraduate loan amount repaid as of 2003, nonpayment rates (including deferment and forbearance as well as default), and the fraction of original undergraduate loan amounts on which borrowers defaulted or are currently not repaying.

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“…Column (5) in Table 6 suggests that this is not explained by differences in borrowing or post-school earnings.…”

Section: A Multivariate Analysis Of Student Loan Repaymentmentioning

confidence: 97%

Section: Data: the Baccalaureate And Beyond Longitudinal Studymentioning

confidence: 99%

Section: A Multivariate Analysis Of Student Loan Repaymentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Default and Repayment Among Baccalaureate Degree Earners

Lochner¹,

Monge‐Naranjo²

2014

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“…Our mechanism, moreover, suggests that differences in education systems can account for crosscountry variations in wage inequality: both within-group and between-group inequality are larger under private than under public funding. Further, increases U.S. federal government more than two billion dollars per year during the 1990s (Flint (1997)). …”

Section: Introductionmentioning

confidence: 99%

Human capital investment with competitive labor search

Kaas

Zink

2011

European Economic 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. Terms of use: Documents in Human Capital Investment with Competitive Labor SearchLeo Kaas Stefan Zink The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. We study human capital accumulation in an environment of competitive search. Given that unemployed workers can default on their education loans, skilled individuals with a larger debt burden prefer riskier but better paid careers than is socially desirable. A higher level of employment risk in turn depresses the skill premium and the incentives to invest in education. The equilibrium allocation is characterized by too much unemployment, underinvestment by the poor, and too little investment in skill-intensive technologies. A public education system funded by graduate taxes can restore efficiency. More generally, differences in education funding can account for cross-country variations in wage inequality.JEL Classification: I22, J24, J31

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Access and equal opportunity in higher education in the United States: the effects of education and public finance policies

John¹,

Tuttle

Musoba

Widening Access to Education as Social Justice

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The globalization of higher education has been ushered in with conservative public finance policies that use tuition and loans as means of shifting the burden of funding colleges from taxpayers to students and their families (Henry et al., 2001). While there have been critical analyses of these policies illuminating the unintended equity effects (Henry et al., 2001; along with literature that espouses the benefits of these shifts (King, 1999), fewer analyses have provided balanced appraisals of the intended and unintended consequences of these new policies. Yet balanced appraisals are precisely what are needed if our goal is to inform the reconstruction of public finance policies in ways that are just for all citizens, taxpayers as well as students and their families.In this chapter we examine patterns of policy change in education and public finance in the United States in an effort to untangle the effects of federal and state policies on educational outcomes. In Section 1 we briefly review the education policy context in the United States and then describe the framework we used to assess the effects of public finance policies on educational opportunity. In Section 2 we examine changes in key outcomes in relation to policy shifts in federal financing of higher education in the United States during the late twentieth century. We conclude by considering the implications for global studies of postsecondary access.

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Predicting Student Loan Defaults

Cited by 41 publications

References 26 publications

Default and Repayment Among Baccalaureate Degree Earners

Default and Repayment Among Baccalaureate Degree Earners

Human capital investment with competitive labor search

Access and equal opportunity in higher education in the United States: the effects of education and public finance policies

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