Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Education
A Trillion-Dollar Question: What Predicts Student Loan Delinquencies?, Alvaro Mezza, Kamila Sommer
A Trillion-Dollar Question: What Predicts Student Loan Delinquencies?, Alvaro Mezza, Kamila Sommer
Journal of Student Financial Aid
The recent significant increase in student loan delinquencies has generated interest in understanding the key factors predicting the non-performance of these loans. However, despite the large size of the student loan market, existing analyses have been limited by lack of data. This paper studies predictors of student loan delinquencies using a nationally representative panel data set that anonymously combines individual credit bureau records with Federal Pell Grant and federal student loan recipient information, records on college enrollment, graduation and major, and school characteristics. We show that borrower-level credit characteristics are important predictors of student loan delinquencies. In particular, credit scores …