The consequences of student loan credit expansions: Evidence from three decades of default cycles

Abstract This paper studies the link between credit availability and student loan repayment using administrative federal student loan data. We demonstrate that expansions and contractions in federal student loan credit to institutions with high default rates explain most of the time series variation in student loan defaults between 1980 and 2010. Expansions in loan eligibility … Continue reading The consequences of student loan credit expansions: Evidence from three decades of default cycles