scholarly journals A Possibility or Just a Wish? Assessing Current Perceptions on the Potentials of a Full Student Loan Debt Forgiveness Legislation

2021 ◽  
Vol 8 (10) ◽  
pp. 365-392
Author(s):  
Ruth Endam Mbah
Keyword(s):  
Interest Groups ◽  
Interest Group ◽  
Financial Institutions ◽  
Student Loans ◽  
Student Loan ◽  
Student Loan Debt ◽  
Loan Repayment ◽  
Policy Window ◽  
Loan Debt ◽  
Theory Technique

Burdensome and unmanageable is what student loan repayment has become to almost 45 million Americans who owe a total of about $1.7 trillion in student loans. It is therefore intriguing to find out if a complete student loan debt forgiveness miracle is a possibility or just a wish, based on current perceptions. This study is based on the Three-Policy Window Stream Theory and the Interest Group Theory. Four mini-focus interview groups were created and their responses were analyzed using the Grounded-Theory Technique. From our findings, it is evident that student loan debt affects the mass, forming a rapidly growing informal interest group made up of mostly millennials. Yet, the pressure from this fast-growing informal interest group is not strong enough to oppose that of other interest groups like Republicans, taxpayers, financial institutions, and other stakeholders involved in student loans, to necessitate an immediate passage of legislation on student loans debt forgiveness.

Employer-Provided Student Loan Repayment Assistance Benefits

2017 ◽  
Vol 49 (4) ◽  
pp. 206-220
Author(s):  
John G. Kilgour
Keyword(s):  
Student Loans ◽  
Student Loan ◽  
Student Loan Debt ◽  
Loan Repayment ◽  
Design And Implementation ◽  
Loan Debt ◽  
Private Student Loans

With 70% of recent hires being encumbered with student-loan debt, employers and employees have recently become interested in repayment assistance benefits. Since about 2015, 4% of employers and 8% of large employers have adopted such plans. An estimated 20% will have them by 2018. This article examines the background, growth and magnitude of federal and private student loans. It also examines those programs that have been adopted and gleans from them a number of questions that will help in the design and implementation of new programs by employers.

scholarly journals Student Loans, Access to Credit and Consumer Financial Behavior

2021 ◽  
Vol 2021 (049) ◽  
pp. 1-61
Author(s):  
Alvaro Mezza ◽  
◽  
Daniel Ringo ◽  
Kamila Sommer ◽  
◽  
...  
Keyword(s):  
Student Loans ◽  
Household Consumption ◽  
Student Loan ◽  
Financial Behavior ◽  
Consumer Debt ◽  
Student Loan Debt ◽  
Loan Repayment ◽  
Access To Credit ◽  
Loan Debt ◽  
Consumer Borrowing

This paper provides novel evidence that increased student loan debts, caused by rising tuitions, increase borrowers' demand for additional consumer debt, while simultaneously restricting their ability to access it. The net effect of student loan debt on consumer borrowing varies by market, depending on whether the supply or demand channel dominates. In loosely underwritten credit markets, increased student loan debt causes borrowing to increase, while in tightly underwritten markets, increased student loan debt reduces the use of credit. These findings match predictions of a standard lifecycle model of household consumption and borrowing, augmented with a realistic student loan repayment contract.

Student loan debt and first-time home buying in USA

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Robert H. Scott III ◽  
Steven Bloom
Keyword(s):  
College Graduates ◽  
Student Loans ◽  
Student Loan ◽  
Home Equity ◽  
Student Loan Debt ◽  
Content Type ◽  
Loan Debt ◽  
The Usa ◽  
First Time ◽  
Home Buying

Purpose This paper aims to examine the relationship between student loan debt and first-time home buying among college graduates aged 23 to 40 years old in the USA. Design/methodology/approach The authors use the Federal Reserve’s 2019 Survey of Consumer Finances data on American households to present descriptive statistics and run logistic regressions that measure the effects of student loan debt on first-time home buying. The authors also present original survey data of mortgage lenders that provides an industry-level perspective. Findings The authors find that having student loan debt does not by itself prohibit first-time home buyers. On the contrary, having student loan debt increases the likelihood of homeownership by 15.1%. People with student loan debt, however, buy homes that are 39.2% less expensive and have 58% less home equity compared to first-time home buyers without student loans. In addition, it is found that the amount of student loan debt is important. People with student loan debt above the median amount among people with student loan debt ($35,000) are 27% less likely to be first-time home buyers. Practical implications This paper provides public policy analysts and other researchers a different perspective on the correlation between student loan debt and home buying. This study focuses narrowly on first-time home buyers who are college graduates between 23 and 40 years. Thus, capturing the youngest cohort of first-time home buyers and examine the primary factors that influence their home buying decisions. Originality/value First-time homebuyers are historically the largest segment of home buyers making them an important subcategory to study. The rise in student loan debt is posited to explain declining homeownership among younger people. The current literature on student loan debt and home buying often studies samples that are too heterogeneous resulting in mixed findings. This paper adds to the existing literature by filtering the sample to study the effects of student loan debt and first-time home buying among people with at least a college degree who are between 23 and 40 years.

The Relationship Between ADHD Symptomatology and Financial Well-Being Among College Students

2019 ◽  
pp. 108705471988744
Author(s):  
Jill M. Norvilitis ◽  
Braden K. Linn ◽  
Michelle M. Merwin
Keyword(s):  
College Students ◽  
Credit Card ◽  
Student Loans ◽  
Well Being ◽  
Student Loan ◽  
Financial Strain ◽  
Student Loan Debt ◽  
Financial Difficulties ◽  
Loan Debt ◽  
Students With Adhd

Objective: Although there is research that indicates financial difficulties among adults with ADHD, little research has examined financial well-being among college students with ADHD. Method: The present study explored the relationships between symptoms of ADHD and credit card and student loan debt, expected student loan debt, perceived financial well-being, worries about student loans, and financial strain behaviors among 612 college students at two public universities in different states. Results: Results indicated that students with more symptoms of ADHD reported lower perceived financial well-being, but there was no relationship between symptomatology and credit card and student loan debt or expected student loan debt. Conclusion: These results highlight the opportunity for interventions to address current perceived financial well-being and to prevent future financial concerns.

Student loan debt and visa status influence on career choices for hematology and medical oncology fellows in the United States.

2020 ◽  
Vol 38 (15_suppl) ◽  
pp. 11024-11024
Author(s):  
Karam Al-Issa ◽  
Sravanti Rangaraju ◽  
Ahmad Abdelfattah Al-Hader
Keyword(s):  
Career Choice ◽  
Career Choices ◽  
Student Loans ◽  
Career Decisions ◽  
The United States ◽  
Student Loan ◽  
Student Loan Debt ◽  
Factors Affecting ◽  
Loan Debt ◽  
Career Options

11024 Background: There are multiple factors influencing future career plans for US hematology/oncology fellows. The objective of this study is to evaluate the effects of student loan debt and visa status as potential factors affecting their career choices. Methods: A total of 159 US hematology/oncology fellowship programs were contacted, program directors forwarded the survey to current hematology/oncology fellows and recent graduates (classes of 2019, 2018 and 2017). The survey consisted of 13 questions regarding their student loan debt and visa status, research experience, initial career plan, current career for graduates, the influence of student loan debt and visa status on their career decisions (academic, private practice, industry), and whether or not their training programs had resources or mentorship to help them deal with those factors. We used a scale of 1-5 to determine how much each factor affected career choice (1 = extremely unaffected, 5 = extremely affected). Results: A total of 220 physicians have participated, 177 (80.5%) fellows and 43 (19.5%) graduates. For graduates, 35% had student loans during fellowship, 40% of them thought that their loans affected their career choice with a score of 4-5. 93% of graduates with student loans answered that they weren't aware of resources/mentorship to address their loans effect on their career. 44% of graduates were on J1/H1 visa during training, 74% of them thought that their visa status affected their career choice with score of 4-5. 63% of graduates who were on visa answered that they weren't aware of resources/mentorship to address visa status as a factor influencing their career options. For current fellows, 51% have student loans, one third of them thought that their loans affected their career choice with score 4-5. 77% of fellows with student loans answered that they weren't aware of resources/mentorship to address their loans effect on their career. 16% of current fellows are on J1/H1 visa, 66% of them thought that their visa status is affecting their career choice with score 4-5. 62% of fellows who are on visa answered that they weren't aware of resources/mentorship to address visa status as a factor influencing their career options. Conclusions: Hematology/oncology fellows report that student loan debt and visa status are important factors affecting their career decisions. The majority of hematology/oncology fellows in this survey weren’t aware of resources or mentorship to help deal with these factors. Mentors need to be aware of these factors to help fellows achieve their career goals.

Financialization and the Tyranny of Bootstraps

2020 ◽  
pp. 37-59
Author(s):  
Terri Friedline
Keyword(s):  
Higher Education ◽  
Student Loans ◽  
Student Loan ◽  
Student Loan Debt ◽  
For Profit ◽  
Default Rates ◽  
Loan Debt ◽  
Recent Trends ◽  
The Individual ◽  
Key Terms

This chapter explores recent trends in student loan debt, particularly the for-profit educational corporation Corinthian Colleges’ scandal, in order to define the key terms financialization and neoliberalism. Finance is playing an expanded role in higher education and securitization is being employed to capitalize off of students’ loan debt. Students are increasingly taking on debt and bearing responsibility for a capitalist economy that is stacked against them. Banks and lenders bundle and sell this debt to wealthy, white investors as securities. Given that Black and Brown borrowers take out more student loans, repay their debts plus interest over longer periods of time, and experience higher default rates compared to their white counterparts, these securities are racialized just like the individual lines of debt from which they were created.

scholarly journals Student Loans: Do College Students Borrow Too Much—Or Not Enough?

2012 ◽  
Vol 26 (1) ◽  
pp. 165-192 ◽  
Author(s):  
Christopher Avery ◽  
Sarah Turner
Keyword(s):  
College Students ◽  
Credit Card ◽  
Student Loans ◽  
Student Loan ◽  
Limited Evidence ◽  
Student Loan Debt ◽  
Educational Expenditures ◽  
Financial Perspective ◽  
Loan Debt ◽  
First Time

Total student loan debt rose to over $800 billion in June 2010, overtaking total credit card debt outstanding for the first time. By the time this article sees print, the continually updated Student Loan Debt Clock will show an accumulated total of roughly $1 trillion. Borrowing to finance educational expenditures has been increasing—more than quadrupling in real dollars since the early 1990s. The sheer magnitude of these figures has led to increased public commentary on the level of student borrowing. We move the discussion of student loans away from anecdote by establishing a framework for considering the use of student loans in the optimal financing of collegiate investments. From a financial perspective, enrolling in college is equivalent to signing up for a lottery with large expected gains—indeed, the figures presented here suggest that college is, on average, a better investment today than it was a generation ago—but it is also a lottery with significant probabilities of both larger positive, and smaller or even negative, returns. We look to available—albeit limited—evidence to assess which types of students are likely to be borrowing too much or too little.

scholarly journals Does Student Loan Debt Structure Young People’s Housing Tenure? Evidence from England

2021 ◽  
pp. 1-21
Author(s):  
ARIANE DE GAYARDON ◽  
CLAIRE CALLENDER ◽  
STEPHEN L. DESJARDINS
Keyword(s):  
Higher Education ◽  
Young People ◽  
Student Loans ◽  
Student Loan ◽  
Housing Tenure ◽  
Higher Education Funding ◽  
Debt Structure ◽  
Student Loan Debt ◽  
Loan Debt ◽  
The Relationship

Abstract This article analyses the interaction between two policy areas affecting young people in England – housing and student funding. It is the first of its kind exploring a range of dynamics in the relationship between housing and student loan debt. Young people today are far less likely to own their home and are more likely to live with their parents than earlier generations. In parallel, higher education tuition fee increases have led to a growing share of students taking out loans and graduating with higher debt, which they will be repaying for most of their working lives. This research examines the relationship between student loans – having borrowed for higher education and attitudes towards debt – and housing tenure at age 25, using the Next Steps dataset. We find that young graduates who did not borrow for higher education are more likely to own their home and less likely to rent or live with their parents than graduates who borrowed for their studies or young people who never attended higher education. These results suggest that higher education funding policies and student loan debt play important roles in structuring young people’s housing in England.

Racial Capitalism and the Black Student Loan Debt Crisis

2021 ◽  
Vol 123 (6) ◽  
pp. 1-28
Author(s):  
Jalil B. Mustaffa ◽  
Caleb Dawson
Keyword(s):  
Higher Education ◽  
Black Student ◽  
Black People ◽  
Student Loans ◽  
Debt Crisis ◽  
Student Loan ◽  
Student Debt ◽  
Student Loan Debt ◽  
Racial Capitalism ◽  
Loan Debt

Background/Context Student loans reflect a larger shift in U.S. society in which people are forced to go into debt for basic needs. Student loan debt in the United States has been recognized as a political economic crisis that disproportionately devastates Black people. Scholars have statistically reported on racialized and gendered stratification in student loan outcomes and several name the racial wealth gap as the main contributing factor to the Black student debt crisis. Yet minimal attention has been dedicated to examining, let alone theorizing, the logics and systemic forces that racialize debt in higher education. Purpose Drawing on a theory of racial capitalism, this article fills analytic and theoretical gaps in the study of the Black student debt crisis by detailing how the crisis has been arranged as well as how it functions to constrain, dispossess, and exploit Black people. Research Design This article offers a corrective history, systematic analysis, and theoretical explanation of the Black student debt crisis. Findings/Results The paper draws on racial capitalism to account for how student loans as a policy has relied on anti-Black racial logics and systemic forces. The authors address how Black educational desires are co-opted, the government configures inclusion according to predatory terms, and the student loan industry forms a debt trap that exploits repayment struggles. While the majority of Black people who enroll in higher education never secure the promise of college as always “worth it,” the arrangement continues to be worthwhile for student loan profiteers. Student loans are perfect for racial capitalism because they answer demands for social access and inclusion (which are already reduced to mean credentialism) and reproduce both the disposability and dispossession of Black people's everyday lives. Conclusions/Recommendations The authors call for the full cancellation of student loan debt. This call forms part of a larger mobilization to abolish the racist logics, processes, and policies that make the Black student debt crisis and Black precarity possible in the first place.

scholarly journals RETIRING AND CAREGIVING IN THE AGE OF STUDENT LOANS: THE IMPACT OF STUDENT DEBT ON RETIREMENT AND LONGEVITY PLANNING

2019 ◽  
Vol 3 (Supplement_1) ◽  
pp. S42-S42
Author(s):  
Samantha Brady ◽  
Julie Miller ◽  
Alexa Balmuth ◽  
Lisa D'Ambrosio ◽  
Joseph Coughlin
Keyword(s):  
Student Loans ◽  
The United States ◽  
Student Loan ◽  
Student Loan Debt ◽  
Retirement Benefits ◽  
Loved One ◽  
Aging Parents ◽  
Loan Debt ◽  
Student Loan Defaults ◽  
The Impact

Abstract Saving for retirement and the ability to provide care for a loved one can be dramatically affected by student loan debt. Currently, approximately 44 million people of all ages in the United States carry the weight of over 1.4 trillion dollars of student loan debt. Student loan borrowers of all ages may experience lower financial preparedness for retirement as well as decreased ability to provide care for family members, including aging parents. While older adults hold a relatively small proportion of student loans, they are the fastest growing subset of student loan borrowers and have disproportionately high rates of student loan defaults. As a result of their defaults, the Social Security retirement benefits of Americans ages 65 and older experienced a 500% increase in offsets over the last decade. This presentation will spotlight an MIT AgeLab mixed methods study about how student loan borrowers between the ages of 51 and 75 experience student loans within family systems and perceive and prioritize longevity planning in light of their student loans. Data collected for this study include focus groups and a large national survey. Preliminary findings suggest that for older borrowers, student loans are generally one of several financial constraints that can inform spending and saving decisions. For most, student loan payments are regarded as stunting overall retirement savings while the minority regard the two separately. Older borrowers also tend to have increased financial and familial responsibilities, including caring for aging parents, that compete for borrowers’ limited financial and temporal resources.

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