Student Debt and Retirement Savings

55 Pages Posted: 13 Dec 2019

See all articles by Birzhan Batkeyev

Birzhan Batkeyev

International School of Economics - Kazakh-British Technical University

Mine Ertugrul

University of Massachusetts Boston

Karthik Krishnan

Northeastern University

Pinshuo Wang

University of South Florida

Date Written: November 26, 2019

Abstract

Using exogenous changes in the personal bankruptcy treatment of student loans as well as the level of student debt, we find that student debt has a negative effect on household retirement savings. This negative relation is present for younger and older individuals, and is larger for the latter group, indicating lower levels of retirement savings for precisely those who can least afford it. We also find that student debt is related to greater borrowing on retirement plans. Households with more student debt expect to have insufficient retirement income and are less able to plan financially for the long term.

Keywords: student debt, retirement savings, higher education, household finance

Suggested Citation

Batkeyev, Birzhan and Ertugrul, Mine and Krishnan, Karthik and Wang, Pinshuo, Student Debt and Retirement Savings (November 26, 2019). Available at SSRN: https://ssrn.com/abstract=3493797 or http://dx.doi.org/10.2139/ssrn.3493797

Birzhan Batkeyev

International School of Economics - Kazakh-British Technical University ( email )

59 Tole Bi Street
Almaty, 050000
Kazakhstan

Mine Ertugrul

University of Massachusetts Boston ( email )

100 Morrissey Blvd
Boston, MA 02125
United States

Karthik Krishnan

Northeastern University ( email )

360 Huntington Avenue
414C Hayden Hall
Boston, MA 02115
United States
617-373-4707 (Phone)

HOME PAGE: http://www.northeastern.edu/kkrishnan

Pinshuo Wang (Contact Author)

University of South Florida ( email )

4202 East Fowler Avenue, BSN3129
Tampa, FL 33620
United States

HOME PAGE: http://sites.google.com/site/pinshuowang/

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