Download this Paper Open PDF in Browser

An Economist's Perspective on Student Loans in the United States

30 Pages Posted: 24 Nov 2015  

Susan M. Dynarski

National Bureau of Economic Research (NBER); University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy; University of Michigan at Ann Arbor - School of Education

Date Written: October 29, 2015

Abstract

In this paper, I provide an economic perspective on policy issues related to student debt in the United States. I lay out the economic rationale for government provision of student loans, summarize time trends in student borrowing, describe the US loan market, then turn to topics central to the policy discussion of student loans: whether there is a student debt crisis, the costs and benefits of interest subsidies, and the suitability of an income-based repayment system for student loans. I close with a discussion of the gaps in the data required to fully analyze and steer student-loan policy.

Keywords: student debt, student loans, subsidies

Suggested Citation

Dynarski , Susan M., An Economist's Perspective on Student Loans in the United States (October 29, 2015). CESifo Working Paper Series No. 5579. Available at SSRN: https://ssrn.com/abstract=2694441

Susan Dynarski (Contact Author)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy ( email )

735 South State Street, Weill Hall
Ann Arbor, MI 48109
United States

University of Michigan at Ann Arbor - School of Education ( email )

610 East University Avenue
Ann Arbor, MI 48109-1259
United States

Paper statistics

Downloads
493
Rank
47,354
Abstract Views
1,151