The long-run impact of the Great Recession on student debt

Detalhes bibliográficos
Autor(a) principal: Pinto, S.
Data de Publicação: 2023
Outros Autores: Steinbaum, M.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10071/31704
Resumo: This paper investigates the effect of local labor market shocks during the Great Recession on subsequent student debt-related outcomes for a panel of 1 million student loan borrowers between the ages 17 and 34 in 2009, following that cohort’s credit reports for the subsequent 10 years. We find that the Great Recession significantly increased student indebtedness, delinquency and default on student debt, and overall non-repayment of student loans. The Great Recession’s effect on student indebtedness amplifies throughout the length of the panel, through 2019. We find that re-enrollment in higher education in response to the recession and declining state and local funding for public institutions are two likely mechanisms by which the recession exerted such a long-term impact on the financial status of student borrowers, beyond the initial economic shock and the sluggish labor market recovery.
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spelling The long-run impact of the Great Recession on student debtStudent debtHigher educationLabor demand credentializationGreat RecessionThis paper investigates the effect of local labor market shocks during the Great Recession on subsequent student debt-related outcomes for a panel of 1 million student loan borrowers between the ages 17 and 34 in 2009, following that cohort’s credit reports for the subsequent 10 years. We find that the Great Recession significantly increased student indebtedness, delinquency and default on student debt, and overall non-repayment of student loans. The Great Recession’s effect on student indebtedness amplifies throughout the length of the panel, through 2019. We find that re-enrollment in higher education in response to the recession and declining state and local funding for public institutions are two likely mechanisms by which the recession exerted such a long-term impact on the financial status of student borrowers, beyond the initial economic shock and the sluggish labor market recovery.Elsevier2025-10-10T00:00:00Z2023-01-01T00:00:00Z20232024-05-15T11:51:50Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/31704eng0927-537110.1016/j.labeco.2023.102449Pinto, S.Steinbaum, M.info:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-07-07T02:38:55Zoai:repositorio.iscte-iul.pt:10071/31704Portal AgregadorONGhttps://www.rcaap.pt/oai/openairemluisa.alvim@gmail.comopendoar:71602024-07-07T02:38:55Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The long-run impact of the Great Recession on student debt
title The long-run impact of the Great Recession on student debt
spellingShingle The long-run impact of the Great Recession on student debt
Pinto, S.
Student debt
Higher education
Labor demand credentialization
Great Recession
title_short The long-run impact of the Great Recession on student debt
title_full The long-run impact of the Great Recession on student debt
title_fullStr The long-run impact of the Great Recession on student debt
title_full_unstemmed The long-run impact of the Great Recession on student debt
title_sort The long-run impact of the Great Recession on student debt
author Pinto, S.
author_facet Pinto, S.
Steinbaum, M.
author_role author
author2 Steinbaum, M.
author2_role author
dc.contributor.author.fl_str_mv Pinto, S.
Steinbaum, M.
dc.subject.por.fl_str_mv Student debt
Higher education
Labor demand credentialization
Great Recession
topic Student debt
Higher education
Labor demand credentialization
Great Recession
description This paper investigates the effect of local labor market shocks during the Great Recession on subsequent student debt-related outcomes for a panel of 1 million student loan borrowers between the ages 17 and 34 in 2009, following that cohort’s credit reports for the subsequent 10 years. We find that the Great Recession significantly increased student indebtedness, delinquency and default on student debt, and overall non-repayment of student loans. The Great Recession’s effect on student indebtedness amplifies throughout the length of the panel, through 2019. We find that re-enrollment in higher education in response to the recession and declining state and local funding for public institutions are two likely mechanisms by which the recession exerted such a long-term impact on the financial status of student borrowers, beyond the initial economic shock and the sluggish labor market recovery.
publishDate 2023
dc.date.none.fl_str_mv 2023-01-01T00:00:00Z
2023
2024-05-15T11:51:50Z
2025-10-10T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10071/31704
url http://hdl.handle.net/10071/31704
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0927-5371
10.1016/j.labeco.2023.102449
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dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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