New Research: Borrowing Arrangements and Returns to Education
A JFI paper on higher ed finance and ISAs
JFI Director of Research Sidhya Balakrishnan and fellow Barry Cynanom posted a pre-print of their paper on SSRN today. The paper, the first major piece of research on ISAs, finds that “on average, borrowing $30,000 diminishes the lifetime college value premium by 11% with an ISA compared to 25% with a student loan.”
The paper is available here.
Related
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The first analysis of the policy-driven student debt cancellation that has been enacted over the last several years.
Part of the series Millennial Student Debt
ISA research cited by White House and others
This research formed part of a White House issue brief, "The Economics of Administration Action on Student Debt."
Working Paper — Navigating Higher Education Insurance: An Experimental Study on Demand and Adverse Selection
A survey-based experiment in collaboration with the Philadelphia Federal Reserve.