Financial Capability of Student Loan Holders: Comparing College Graduates, Dropouts, and Enrollees

2019 ◽  
Author(s):  
Jing Jian Xiao ◽  
Nilton Porto ◽  
irene mcivor mason
Keyword(s):  
College Graduates ◽  
Student Loan ◽  
Financial Capability

Student loan debt and first-time home buying in USA

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Robert H. Scott III ◽  
Steven Bloom
Keyword(s):  
College Graduates ◽  
Student Loans ◽  
Student Loan ◽  
Home Equity ◽  
Student Loan Debt ◽  
Content Type ◽  
Loan Debt ◽  
The Usa ◽  
First Time ◽  
Home Buying

Purpose This paper aims to examine the relationship between student loan debt and first-time home buying among college graduates aged 23 to 40 years old in the USA. Design/methodology/approach The authors use the Federal Reserve’s 2019 Survey of Consumer Finances data on American households to present descriptive statistics and run logistic regressions that measure the effects of student loan debt on first-time home buying. The authors also present original survey data of mortgage lenders that provides an industry-level perspective. Findings The authors find that having student loan debt does not by itself prohibit first-time home buyers. On the contrary, having student loan debt increases the likelihood of homeownership by 15.1%. People with student loan debt, however, buy homes that are 39.2% less expensive and have 58% less home equity compared to first-time home buyers without student loans. In addition, it is found that the amount of student loan debt is important. People with student loan debt above the median amount among people with student loan debt ($35,000) are 27% less likely to be first-time home buyers. Practical implications This paper provides public policy analysts and other researchers a different perspective on the correlation between student loan debt and home buying. This study focuses narrowly on first-time home buyers who are college graduates between 23 and 40 years. Thus, capturing the youngest cohort of first-time home buyers and examine the primary factors that influence their home buying decisions. Originality/value First-time homebuyers are historically the largest segment of home buyers making them an important subcategory to study. The rise in student loan debt is posited to explain declining homeownership among younger people. The current literature on student loan debt and home buying often studies samples that are too heterogeneous resulting in mixed findings. This paper adds to the existing literature by filtering the sample to study the effects of student loan debt and first-time home buying among people with at least a college degree who are between 23 and 40 years.

scholarly journals Bridging the Financial Gap Among Young People

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Hannah Torres ◽  
Russell Rudman
Keyword(s):  
United States ◽  
Low Income ◽  
College Graduates ◽  
The United States ◽  
Student Loan ◽  
Negative Effects ◽  
Financial Decisions ◽  
The Subject ◽  
The Cost ◽  
The Relationship

Experts have determined that the cost of attending college is rising (Williams, 2006) and as a result, it has altered college graduates’ cumulative debt levels. In addition, research shows that those who attend college are more likely to earn higher salaries (Ma et al., 2016). Consequently, the existence of a low-income college graduate population would be considered a paradox. Simultaneous to such changes mentioned, homeownership among young individuals is declining in the United States (Dettling & Hsu, 2014). As of today, research has focused on the relationship between student loan debt and homeownership but has neglected the relationship between cumulative debt and homeownership. This study will answer the following question: What is the relationship between cumulative debt acquired by low-income college graduates between the ages of 23-40 in the United States in the 21st century and the corresponding likelihood of homeownership? Through interviews with five low-income college graduates, I collected narratives describing their outlooks on cumulative debt and its influences on homeownership. Through thematic analysis, I drew connections between common themes that indicated how cumulative debt affected one’s actions or thoughts regarding purchasing a home.  The results showed that cumulative debt has negative effects on homeownership. Subjects disclosed that their struggle to pay their cumulative debt and inability to accumulate wealth were the two most common hindrances of purchasing a home. This is significant because cumulative debt predetermines how the subject manages their finances to pursue purchasing a home and such data may influence the financial decisions of future generations.

scholarly journals Financial capability of student loan holders who are college students, graduates, or dropouts

2020 ◽  
Vol 54 (4) ◽  
pp. 1383-1401
Author(s):  
Jing Jian Xiao ◽  
Nilton Porto ◽  
Irene McIvor Mason
Keyword(s):  
College Students ◽  
Student Loan ◽  
Financial Capability

scholarly journals ‘Adulting’ Is Hard: Understanding the College-to-Career Transition and Supporting Young Adults’ Emotional Wellbeing

2020 ◽  
Vol 17 (21) ◽  
Author(s):  
Laura Golden ◽  
Jade Moser ◽  
Aimee Vella-Riplee ◽  
John MacPhee ◽  
Victor Schwartz ◽  
...  
Keyword(s):  
Young Adults ◽  
Independent Living ◽  
College Graduates ◽  
Emotional Health ◽  
Career Transition ◽  
Student Loan ◽  
Limited Attention ◽  
Emotional Wellbeing ◽  
Transitions To Adulthood ◽  
University Of Massachusetts

The transition from college to career includes many challenges, such as adjusting to a professional environment, the high costs of student loan repayment and independent living, and changes in social support networks. Many of these challenges affect a young person’s emotional wellbeing; however, limited attention has been paid in the literature or at the practice level to the emotional wellbeing of college graduates as they transition from college to career. To address this underrecognized issue, investigators from The Jed Foundation (JED), a leading nonprofit organization with a mission to protect the emotional health and prevent suicide among teens and young adults, and the Transitions to Adulthood Center for Research (Transitions ACR) at the University of Massachusetts Medical School collaborated on a study to better understand the experiences of young adults during the college-to-career transition and how these experiences effect emotional wellbeing.

scholarly journals “Without them I couldn't pay for my education, so here I am": Latinx college graduates’ experiences with and perceptions of their student loan debt

2020 ◽  
Vol 14 (3) ◽  
pp. 30-46
Author(s):  
Vincent D. Carales ◽  
Mauricio Molina ◽  
Darrell L. Hooker, Jr.
Keyword(s):  
Financial Literacy ◽  
College Graduates ◽  
Student Loan ◽  
Sources Of Information ◽  
Student Loan Debt ◽  
Informed Decisions ◽  
Loan Debt

The purpose of the current study was to examine the experiences of Latinx students with their student loan debt. Guided by McKinney et al.’s (2015) Student Borrower Behavior and Attitudes model, we framed our study around the following themes: sources of information, rationale for borrowing, and the burden of debt. Findings underscore the importance of financial literacy and provide insight as to how institutions can better support Latinx students in making informed decisions about borrowing loans to pay for and finish college.

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