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The structure of attitudes to student debt

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  • Haultain, Steve
  • Kemp, Simon
  • Chernyshenko, Oleksandr S.

Abstract

We examined the structure of attitudes to debt among current and prospective New Zealand tertiary students. Study 1 employed exploratory factor analysis to investigate the structure of debt attitudes of 1232 respondent in their final year of secondary school; Study 2 used exploratory factor analysis to investigate debt attitudes of 125 first-year university students. Both studies indicated that, contrary to what was assumed in the past, the structure of these attitudes is not unidimensional and is reasonably described by two dimensions, Fear of Debt and Debt Utility. In Study 3, confirmatory factor analysis indicated the superiority of the two-factor solution for the attitudes to debt of a sub-sample of Study 1 questioned a year later. The two factors have somewhat different relationships with other variables. Study 3 also showed that on average, longitudinally, the students became less debt fearful between the end of secondary school and the end of their first year or tertiary study but their views as to the utility of debt remained unchanged.

Suggested Citation

  • Haultain, Steve & Kemp, Simon & Chernyshenko, Oleksandr S., 2010. "The structure of attitudes to student debt," Journal of Economic Psychology, Elsevier, vol. 31(3), pages 322-330, June.
    • Handle: RePEc:eee:joepsy:v:31:y:2010:i:3:p:322-330
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    References listed on IDEAS

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    1. Hayhoe, Celia Ray & Leach, Lauren & Turner, Pamela R., 1999. "Discriminating the number of credit cards held by college students using credit and money attitudes," Journal of Economic Psychology, Elsevier, vol. 20(6), pages 643-656, December.
    2. Davies, Emma & Lea, Stephen E. G., 1995. "Student attitudes to student debt," Journal of Economic Psychology, Elsevier, vol. 16(4), pages 663-679, December.
    3. Clive Thorp & Bun Ung, 2001. "Recent trends in household financial assets and liabilities," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 64, June.
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    1. Machteld Hoeve & Geert Jan J M Stams & Marion van der Zouwen & Margaretha Vergeer & Kitty Jurrius & Jessica J Asscher, 2014. "A Systematic Review of Financial Debt in Adolescents and Young Adults: Prevalence, Correlates and Associations with Crime," PLOS ONE, Public Library of Science, vol. 9(8), pages 1-16, August.
    2. Claire Callender & Geoff Mason, 2017. "Does Student Loan Debt Deter Higher Education Participation? New Evidence from England," The ANNALS of the American Academy of Political and Social Science, , vol. 671(1), pages 20-48, May.
    3. Harrison, Neil & Agnew, Steve & Serido, Joyce, 2015. "Attitudes to debt among indebted undergraduates: A cross-national exploratory factor analysis," Journal of Economic Psychology, Elsevier, vol. 46(C), pages 62-73.
    4. Andrzej Cwynar & Wiktor Cwynar & Monika Baryła-Matejczuk & Moises Betancort, 2019. "Sustainable Debt Behaviour and Well-Being of Young Adults: The Role of Parental Financial Socialisation Process," Sustainability, MDPI, vol. 11(24), pages 1-26, December.
    5. Michael Goedde-Menke & Carsten Erner & Michael Oberste, 2017. "Towards more sustainable debt attitudes and behaviors: the importance of basic economic skills," Journal of Business Economics, Springer, vol. 87(5), pages 645-668, July.
    6. Brennan, Linda & Zevallos, Zuleyka & Binney, Wayne, 2011. "Vulnerable consumers and debt: Can social marketing assist?," Australasian marketing journal, Elsevier, vol. 19(3), pages 203-211.
    7. Bartkevičiūtė Gintarė & Gaigalienė Asta & Legenzova Renata, 2018. "The Assessment of Determinants of Credit Services’ Choices among Students," Management of Organizations: Systematic Research, Sciendo, vol. 79(1), pages 7-23, June.
    8. Meyll, Tobias & Pauls, Thomas, 2019. "The gender gap in over-indebtedness," Finance Research Letters, Elsevier, vol. 31(C).
    9. Stephan Thomsen & Friederike von Haaren-Giebel, 2016. "Did tuition fees in Germany constrain students’ budgets? New evidence from a natural experiment," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-25, December.
    10. Robin Henager & Sophia T. Anong & Joyce Serido & Soyeon Shim, 2021. "Does Financial Satisfaction Vary Depending on the Funding Strategy Used to Pay for College?," Journal of Family and Economic Issues, Springer, vol. 42(3), pages 429-448, September.
    11. Popovich, Jacob J. & Loibl, Cäzilia & Zirkle, Christopher & Whittington, M. Susie, 2020. "Community college students’ response to a financial literacy intervention: An exploratory study," International Review of Economics Education, Elsevier, vol. 34(C).
    12. Aswathi Rebecca Asok & Joe Cox, 2024. "Debt Attitude and Debt Accumulation among Rural Poor Households in a Developing Region: A Q-squared Approach," Working Papers in Economics & Finance 2024-03, University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group.
    13. Jill M. Norvilitis, 2014. "Changes over Time in College Student Credit Card Attitudes and Debt: Evidence from One Campus," Journal of Consumer Affairs, Wiley Blackwell, vol. 48(3), pages 634-647, October.
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