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The Effect of Households’ Student Debt on Life Satisfaction

Author

Listed:
  • Thomas Korankye

    (The University of Arizona)

  • Charlene M. Kalenkoski

    (Texas Tech University)

Abstract

This study finds a negative effect of holding student-loan debt on the life satisfaction of household heads using longitudinal data from the 2011 to 2017 U.S. Panel Study of Income Dynamics and a fixed-effects modeling approach. Although debt is taken to improve future utility, it provides disutility to the head of household until it is paid off. Thus, financial planners and educators should remind their clients about the consequences of holding student-loan debt in the short term, not just the future benefits.

Suggested Citation

  • Thomas Korankye & Charlene M. Kalenkoski, 2021. "The Effect of Households’ Student Debt on Life Satisfaction," Journal of Family and Economic Issues, Springer, vol. 42(4), pages 757-772, December.
    • Handle: RePEc:kap:jfamec:v:42:y:2021:i:4:d:10.1007_s10834-021-09753-9
    DOI: 10.1007/s10834-021-09753-9
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