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This study investigates the relation of bank loan delinquencies to Fed Survey delinquency data from 2003 to 2017. Bank-generated loans have lower delinquencies than all Fed Survey loan types. Survey mortgage and auto loan delinquencies are positively related to bank loan delinquencies indicating complimentary delinquency decisions for borrowers. Conversely, student loans delinquencies are negatively related to bank loans, consistent with borrowers substituting student loan payments for bank debt for the entire sample period. Student loan delinquencies are negatively related to per-capita bankruptcy, and all other types of debt have a positive relation. The relation between Fed Survey loan delinquencies and bank-generated loan delinquencies is time varying and changed after the financial crisis in 2008.

Seemingly Unrelated Regression is used to study delinquencies for three bank loan types and whether or not they are related to Fed Survey loan delinquencies. The sample is split into pre-financial crisis before 2008 and post-crisis after 2008.

Seemingly Unrelated Regression (SUR) results show that bank delinquencies for second mortgages and “Other” loan types are consistently complementary to Fed Survey mortgage loan delinquencies. Fed Survey auto loans delinquencies are also consistent with a complimentary relation, and these results are largely driven by the relation after the financial crisis of 2008 since pre-crisis regression results are not significant for every dependent variable. Credit card loan delinquencies have a negative and substitute relation with bank-generated first mortgage loan delinquencies prior to the crisis in 2008, and with bank-generated second mortgages after the crisis. Conversely, student loan delinquencies from the Fed Survey are negatively and significantly related to bank mortgages for the entire sample period, but only with bank-generated first mortgages after 2008. The student loan delinquency results are consistent with income smoothing, on average, although this is not explicitly tested at the micro level since this study uses macro-level data and not borrower-specific data. These findings are also consistent with conventional wisdom that student loans provide “financial slack” and borrower flexibility.

A limiting factor is this study uses macro-level data and not borrower-specific data.

Empirical findings are consistent with prior research that student loans provide income smoothing and “financial slack,” and borrowers with payment challenges will pay other debt before student loans.

Borrowers in financial trouble tend to be delinquent for all debt, and more so for student debt.

To investigate whether Fed Survey delinquencies of auto loans, first mortgages, student loans and credit card loans from all sources have complementary or substitution effects with bank debt at a macro level. The study investigates whether bank debt follows “market trends” as a complementary effect, or if bank debt has a negative relation to other debt indicating a substitution effect.

The purpose of this paper is to measure the antecedents of students' attitude and the impact of students' attitude on the intention to repay study loans.

Primary data from 428 students in universities in Malaysia are collected and six constructs from theory are identified: perceptions that loan repayment will affect the quality of life after graduation; awareness of loan repayment issues created by media; perceptions towards loan agreement; parental influence; students' attitude towards loan repayment; and intention to repay loan. Structural equation modelling approach is adopted to analyze the data.

Constructs of parental influence and perceptions that loan repayment will affect the quality of life after graduation are found to have a direct relationship with students' attitude towards loan repayment; perceptions towards loan agreement is found to influence belief that loan repayment will affect the quality of life after graduation; and awareness of loan repayment issues created by media is found to affect parental influence. The relationship between students' attitude and intention is found to be statistically positive and significant.

The study has been conducted in aggregate form. Future studies could account for ethnic, gender, and regional differences.

The primary users of the results of this study would be the countries that provide education loans, and keen to cut down on student loan defaults.

The study is first of its kind to approach the issue of student loan defaults in a multi‐method manner and develop a comprehensive theoretical model that can be put to empirical test by future researchers.

This paper aims to examine gender differences in credit access and credit default.

Using panel data drawn from 917 valid credit borrowers covering the period 2012 to 2015 drawn from among 6,849 study subjects and a national household financial survey (n = 29,500) conducted in China, this study focuses on gender differences in small and micro entrepreneurs’ financial behavior, specifically with respect to credit access and credit default.

The study revealed the following: Women expressed having more barriers to obtaining a business loan than men; gender had a significant effect on women’ credit default; and women were less likely to default a loan than male loan borrowers did. An exploration of the reasons for credit access and default found that female loan applicants were more likely to display a lack of knowledge and confidence in loan application.

The study contributes to literature by using the Marxian concept of reification in explaining women and their financial behaviors in China.

As students increasingly incur debt to finance their undergraduate education, there is heightened concern about the long-term implications of loans on borrowers, especially borrowers from low socioeconomic backgrounds. Drawing upon the concepts of cultural capital and habitus (Bourdieu & Passeron, 1977), this research explores how student debt and social class intersect and affect individuals’ trajectory into adulthood. Based on 50 interviews with young adults who incurred $30,000–180,000 in undergraduate debt and who were from varying social classes, the findings are presented in terms of a categorization schema (income level by level of cultural capital) and a conceptual model of borrowing. The results illustrate the inequitable payoff that college and debt can have for borrowers with varying levels of cultural resources, with borrowers from low-income, low cultural capital backgrounds more likely to struggle throughout and after college with their loans.

National student loans help solve the problem of tuition fees for students from poor families to a great extent. This paper aims to study the behavior of three main players involved in university student loans, namely, universities, banks and students and explores necessary conditions for promoting the steady development of student loans, as well as the sustainability of cooperation and coordination among players, thus promoting the further development of student loans.

First, from the perspectives of the three related players of banks, students and universities and their behavior, this paper establishes a three-player behavioral evolutionary game model, conducts a sustainable game analysis among the different players, and by replicating the dynamic equations with the Jacobian matrix solve the evolutionarily stable strategy. Finally, applying MATLAB tools, a sensitivity analysis of relevant impacting factors is carried out to explore the influencing mechanism of the sustainable development of student loans.

To achieve the mechanism of mutual coordination and cooperation between participants, banks need to be guided to actively issue student loans and conduct strict loan review. College students should be encouraged to establish good credit and strengthen penalties should be implemented for violations of regulations. Universities should be encouraged to help banks reduce information asymmetry, promote financial knowledge and student integrity education and promote the sustainable development of national student loans.

This research will help scholars better understand the interaction mechanism among universities, banks and students, and promote the sustainable development of national student loans.

The United States has been at the forefront of a global shift away from direct state funding of higher education and toward student loans, and student debt has become an issue of growing social concern. Why did student loans expand so much in the United States in the 1990s and 2000s? And how does organization theory suggest their expansion, and the growth of federal student aid more generally, might affect higher education as a field? In the 1960s and 1970s, policy actors worked to solve what was then a central problem around student loans: banks’ disinterest in lending to students. They did this so well that by 1990, a new field of financial aid policy emerged, in which all major actors had an interest in expanding loans. This, along with a favorable environment outside the field, set the stage for two decades of rapid growth. Organization theory suggests two likely consequences of this expansion of federal student loans and financial aid more generally. First, while (public) colleges have become less dependent on state governments and more dependent on tuition, the expansion of aid means colleges are simultaneously becoming more dependent on the federal government, which should make them more susceptible to federal demands for accountability. Second, the expansion of federal student aid should encourage the spread of forms and practices grounded in a logic focused on students’ financial value to the organization, such as publicly traded for-profit colleges and enrollment management practices.

This paper aims to examine the relationship between student loan debt and first-time home buying among college graduates aged 23 to 40 years old in the USA.

The authors use the Federal Reserve’s 2019 Survey of Consumer Finances data on American households to present descriptive statistics and run logistic regressions that measure the effects of student loan debt on first-time home buying. The authors also present original survey data of mortgage lenders that provides an industry-level perspective.

The authors find that having student loan debt does not by itself prohibit first-time home buyers. On the contrary, having student loan debt increases the likelihood of homeownership by 15.1%. People with student loan debt, however, buy homes that are 39.2% less expensive and have 58% less home equity compared to first-time home buyers without student loans. In addition, it is found that the amount of student loan debt is important. People with student loan debt above the median amount among people with student loan debt ($35,000) are 27% less likely to be first-time home buyers.

This paper provides public policy analysts and other researchers a different perspective on the correlation between student loan debt and home buying. This study focuses narrowly on first-time home buyers who are college graduates between 23 and 40 years. Thus, capturing the youngest cohort of first-time home buyers and examine the primary factors that influence their home buying decisions.

First-time homebuyers are historically the largest segment of home buyers making them an important subcategory to study. The rise in student loan debt is posited to explain declining homeownership among younger people. The current literature on student loan debt and home buying often studies samples that are too heterogeneous resulting in mixed findings. This paper adds to the existing literature by filtering the sample to study the effects of student loan debt and first-time home buying among people with at least a college degree who are between 23 and 40 years.

To provide an informative review of the gainful employment legislation proposed by the Obama Administration which seeks to reform higher education by making colleges and universities more accountable in their institutional practices.

This paper provides a thorough review of a breadth of recently published works and notice of proposed rulemakings (NPRMs) on gainful employment legislation providing a practical understanding of the proposed policy. The sources are sorted into the following sections: background of rulemaking proceedings, who are the students, proposed measures, challenges, policy recommendations, implications for practice, and future research.

An analysis of the information reviewed is presented providing policy recommendations that could potentially circumvent some of the challenges presented as well as satisfy the government’s need to hold institutions more accountable. Offered as an amenable solution to stakeholders is to better inform students about program outcomes, financial aid packages, and financial obligations to mitigate the need for regulation and for institutions to perform continuous evaluation of their programs to align with workforce needs.

This paper serves as an informative resource to college/university administrators, students, parents, and policymakers offering practical recommendations to achieve the goals of all stakeholders by employing approaches to better inform students in their decision making.

The reviewed literature emphasized that the student loan debt issues have a lot of connections to the economy. This conclusion is in support with broader evidence that high student debt levels are a drag on economic growth. Additionally, disadvantaged and other vulnerable groups, including students, are more likely to be excluded from the formal, regulated financial sector and not be able to take advantage of mainstream financial service providers (e.g. lack access to credit, insurance, and other formal financial services). Among the primary reasons cited for this financial exclusion has to do with a lack of understanding or familiarity with traditional financial services. The aim of this paper is to look at alternate approaches in promoting financial literacy to manage the huge private debt burden facing this important segment of the population. The purpose of this paper is to advance a model of college students’ financial capabilities enhancement to partially alleviate some of the problems related to deficits in financial knowledge among this population. The integrative model provides a framework to be operationalized by institutional decision-makers and policymakers at all levels. The model can be adapted to fit unique institutional circumstances and culture. Successful implementation of the model has the potential to enhance the quality of financial health among college students and young adults.

The manuscript’s aim is to advance a model of college students’ financial capabilities in an effort to prevent their financial exclusion. The proposed model provides a framework to be operationalized by institutional decision-making processes. The model offers six distinct, but inter-related components – antecedent variables, program design and implementation, delivery modalities, program content, behavioral outcomes, and measurement and assessment.

The underlying raison d’etre for the model is to offer a comprehensive, inclusive, across-the-board roadmap to guide universities, and other organizations in conceptualizing, planning, organizing, implementing, and assessing financial education-related systems and processes designed to enhance the long-term financial choices and behaviors of students. Through careful consideration of each of the phases of the model, decision-makers at all levels and all types of organizations should have a stronger grasp of the depth and breadth of actions required to effect the desired changes in students’ financial behavior.

As with any paper there are limitations. The paper is conceptual and lacks data to test some of the linkages. Future research efforts should posit specific propositions to be tested based on the linkages offered in the model. Given the nature of the research theme, there is considerable benefit from taking a case-based approach to future research to offer more in-depth analyses of student financial literacy deficits across different situations and types, student markets, and educational institutions. The current research could also benefit from a stronger cross-cultural focus. While huge college student debt is probably more burdensome in the USA, it is helpful to get input from students in countries that lack a tradition of heavy borrowing to pay for college costs. Researching debt management trends across cultures should provide useful micro- and macro-economic data for policymakers and others.

The paper introduces a model of college students’ financial capabilities enhancement and financial exclusion’s prevention that offers one avenue to partially remedy the direct and indirect ills perpetrated and perpetuated by insufficient financial knowledge among young adults, especially the college segment (i.e. to promote financial inclusion and financial exclusion’s prevention). The model provides a comprehensive and integrative path for college administrators and others to consider when designing programs to enhance the overall financial knowledge acumen and savvy of college students. Specifically, the model discusses antecedent variables, program design and implementation, delivery modalities, program content, behavioral outcomes, and measure and evaluation options.

There is considerable concern among students, parents, marketers, and public policymakers regarding deficiencies in financial knowledge and capabilities among the young adult population. Students have massive student loan debt, collectively, and there is a multifaceted clarion call to develop integrative solutions to this daunting scenario. The paper discusses the gravity and consequences of financial literacy deficits among college students and some associated solutions.

The model offers six distinct, but inter-related components – antecedent variables, program design and implementation, delivery modalities, program content, behavioral outcomes, and measurement and assessment. The model is posited as an “intervention strategy” capable of strengthening the capacity of young college adults to make informed financial decisions, thus impacting their quality of life over the long run. In particular the model offers a form of empowerment to this consumer segment. As stated, the underlying raison d’etre for the model is to offer a comprehensive, inclusive, across-the-board roadmap to guide universities and other organizations in conceptualizing, planning, organizing, implementing, and assessing financial education-related systems and processes designed to enhance the long-term financial choices and behaviors of students. Through careful consideration of each of the phases of the model, decision-makers at all levels and all types of organizations should have a stronger grasp of the depth and breadth of actions required to effect the desired changes in students’ financial behavior.