Estimating the Effect of Losing the Federal Loan Subsidy on Debt Accumulation for Graduate and Law/Professional Students: Evidence from a Natural Experiment

• In Event: Financial and Demographic Impacts on Students and Academic Programs of Study

Abstract

We use difference-in-differences to addresses an important gap in student debt literature by estimating the effect of the Budget Control Act of 2011 on borrowing behaviors and debt accumulation for graduate and law/professional students. We explore heterogeneous effects across student subgroups and present important implications for policy and future research.

Authors

• Manuel S Gonzalez Canche, University of Pennsylvania

• Jason Clark Lee, State Higher Education Executive Officers Association (SHEEO)

• Jeffrey Harding, AdvancED | Measured Progress

• Taylor K. Odle, University of Pennsylvania

• Jeremy Wright-Kim, University of Pennsylvania