Exploring Financial Burdens of Student Loan Holders in the United States

Abstract

This study examined the profile of student loans in the U.S., identifying the determinants of three types of financial burdens attributable to student loans: (1) outstanding balance; (2) loan payment-to-income ratio, and (3) loan delinquency. The pooled dataset from the 2010 to 2013 Survey of Consumer Finances was used, and the analytic sample size was 2,161 households with outstanding student loan balances. Regression results indicated that factors associated with student loan burden varied; households with a higher educational attainment had greater student loan debt with high loan payment-to-income ratios and were less likely to be delinquent compared to those with a high school degree or less. This study provides broad aspects of student loan debt payment and potential risks, which provide opportunities for further research.

Keywords: Student Loans; Financial Burden; Debt Payment; Survey of Consumer Finances

JEL Classification: D12; D14; I22