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Center for Social Development Research

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2014

College debt

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Full-Text Articles in Social Work

Education Loans And Wealth Building Among Young Adults, Min Zhan, Xiaoling Xiang Jun 2014

Education Loans And Wealth Building Among Young Adults, Min Zhan, Xiaoling Xiang

Center for Social Development Research

This study examines the association between education loans and postcollege wealth accumulation among young adults. Data come from the 1997 National Longitudinal Survey of Youth, and the analyses control for a number of student characteristics, college experiences, and parental income. Results from a treatment-effect model indicate that having education loans upon leaving college is negatively related to postcollege net worth, financial assets, nonfinancial assets, and value of primary housing. Furthermore, having education loans also has a negative impact on the value of net worth among Black young adults. The relationship between the amount of education loans and wealth accumulation is …


Does Outstanding Student Debt Reduce Asset Accumulation?, William Elliott, Michal Grinstein-Weiss, Ilsung Nam Jan 2014

Does Outstanding Student Debt Reduce Asset Accumulation?, William Elliott, Michal Grinstein-Weiss, Ilsung Nam

Center for Social Development Research

In this study, the authors use the Survey of Consumer Finances (SCF) to assess whether student loan debt is associated with total assets. They find that median 2009 assets for households with no outstanding student loan debt ($207,000) are higher than they are for households with outstanding student loan debt ($174,000). Multivariate statistics indicate that a household with a four-year college graduate, outstanding student loan debt, and median assets ($451,520) in 2007 had $136,73 (36%) less home equity in 2009 than a household with a similar household with no outstanding student loan debt. The main policy implication of this study …