Additional Authors

Grinstein-Weiss, Michal; Nam, Ilsung

Publication Date

1-16-2014

Summary

In this study, the authors use the Survey of Consumer Finances (SCF) to assess whether student loan debt is associated with total assets. They find that median 2009 assets for households with no outstanding student loan debt ($207,000) are higher than they are for households with outstanding student loan debt ($174,000). Multivariate statistics indicate that a household with a four-year college graduate, outstanding student loan debt, and median assets ($451,520) in 2007 had $136,73 (36%) less home equity in 2009 than a household with a similar household with no outstanding student loan debt. The main policy implication of this study is that outstanding student debt may reduce asset accumulation in the short term, which suggests an important rationale for exploring alternative financial aid structures.

Document Type

Working Paper

Category

Financial Inclusion

Subarea

Asset Building

Original Citation

Elliott, W., III, Grinstein-Weiss, M., & Nam, I. (2013). Does outstanding student debt reduce asset accumulation? (CSD Working Paper No. 13-32). St. Louis, MO: Washington University, Center for Social Development.

DOI:

https://doi.org/10.7936/K78S4PF8

Project

College Success

Keywords

529, asset accumulation, college debt, college degree attainment, college enrollment, college expectations, college savings, United States

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