Saturday, May 26, 2007

Some effects of student debt

the following NBER working paper provides a very interesting analysis of one potential effect of bringing in student loans. The paper finds that student debt causes students to take on high-paying "non-public interest" jobs to a greater degree. To me, this implies that student grants, free fees etc., are acting as a subsidy of sorts to public service type jobs. They also find that students who are in debt are less likely to contribute back to college in terms of alumni donations.

http://papers.nber.org/papers/w13117

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