Author

Min Zhan

Additional Authors

Xiang, Xiaoling

Publication Date

6-30-2014

Summary

This study examines the association between education loans and postcollege wealth accumulation among young adults. Data come from the 1997 National Longitudinal Survey of Youth, and the analyses control for a number of student characteristics, college experiences, and parental income. Results from a treatment-effect model indicate that having education loans upon leaving college is negatively related to postcollege net worth, financial assets, nonfinancial assets, and value of primary housing. Furthermore, having education loans also has a negative impact on the value of net worth among Black young adults. The relationship between the amount of education loans and wealth accumulation is not statistically significant among those with outstanding loans.

Document Type

Working Paper

Category

Financial Inclusion

Subarea

Asset Building

Original Citation

Zhan, M., & Xiang, X. (2014). Education loans and wealth building among young adults (CSD Working Paper No. 14-14). St. Louis, MO: Washington University, Center for Social Development.

DOI:

https://doi.org/10.7936/K7M9087C

Project

College Success

Keywords

529, adult, assets, college debt, debt, homeownership, post-secondary education

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