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Connecting Student Loans to Labor Market Outcomes: Policy Lessons from Chile†.
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- Author(s): Beyer, Harald; Hastings, Justine; Neilson, Christopher; Zimmerman, Seth
- Source:
American Economic Review; May2015, Vol. 105 Issue 5, p508-513, 6p, 2 Charts- Subject Terms:
- Source:
- Additional Information
- Abstract: Rising student loan default rates and protests over debt suggest that many students make college enrollment and financing choices they regret. Policymakers have considered tying the availability of federally subsidized loans at degree programs to financial outcomes for past students. This paper considers the implementation of such a policy in Chile. We describe how loan repayment varied by degree type at baseline, the design of the loan reform, and how earnings-based loan caps change availability of loans and incentives for students and higher education institutions. We discuss the challenges facing policymakers seeking to link loan availability to earnings outcomes. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of American Economic Review is the property of American Economic Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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