IDEAS home Printed from https://ideas.repec.org/p/fip/fednls/87226.html
   My bibliography  Save this paper

Who is More Likely to Default on Student Loans?

Author

Abstract

This post seeks to understand how educational characteristics (school type and selectivity, graduation status, major) and family background relate to the incidence of student loan default. Student indebtedness has grown substantially, increasing by 170 percent between 2006 and 2016. In addition, the fraction of students who default on those loans has grown considerably. Of students who left college in 2010 and 2011, 28 percent defaulted on their student loans within five years, compared with 19 percent of those who left school in 2005 and 2006. Since defaulting on student loans can have serious consequences for credit scores and, by extension, the ability to purchase a home and take out other loans, it’s critical to understand how college and family characteristics correspond to default rates.

Suggested Citation

  • Rajashri Chakrabarti & Nicole Gorton & Michelle Jiang & Wilbert Van der Klaauw, 2017. "Who is More Likely to Default on Student Loans?," Liberty Street Economics 20171120, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:87226
    as

    Download full text from publisher

    File URL: https://libertystreeteconomics.newyorkfed.org/2017/11/who-is-more-likely-to-default-on-student-loans.html
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    for-profits; Default; student loans;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J00 - Labor and Demographic Economics - - General - - - General
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fednls:87226. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gabriella Bucciarelli (email available below). General contact details of provider: https://edirc.repec.org/data/frbnyus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.