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How Financial Literacy, Federal Aid Knowledge, and Credit Market Experience Predict Loan Aversion for Education

Dados Bibliográficos

ID5741385
AutoresAngela Boatman (0000-0003-3890-8164, autor correspondente), Brent J Evans (0000-0002-9676-9695)
Ano2017
Volume671
Fascículo1
Páginas49-68
Data de publicação2017-05-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Annals of the American Academy of Political and Social Science (JOURNAL)
Identificadores do periódicoISSN: 0002-7162 • E-ISSN: 1552-3349
EditoraSAGE Publications Inc (PUBLISHER)
DOI10.1177/0002716217695779
OpenAlexW2608181630
IdiomaEN
Citações recebidas9
Referências citadas35

Many students are averse to taking out loans to pay for education-a phenomenon that is commonly discussed but rarely systematically analyzed. This study explores the relationship between student loan aversion and individual financial characteristics. In this analysis, we rely on a unique dataset of survey responses from more than 5,000 high school seniors, community college students who did and did not borrow for higher education, and adults without a college degree. Regression analyses, using a robust set of controls and institutional fixed effects, show that higher financial literacy and higher knowledge of federal student loans are related to lower loan aversion for education. The magnitude of these effects is large, as much as a 30 to 50 percent reduction in loan aversion in some samples. There is also evidence that prior experience with payday lending is related to increased loan aversion for community college students who did not borrow for college

Actuarial science · Business · Community college · Demographic economics · Economic growth · Economics · Expected utility hypothesis · Financial economics · Financial literacy · Literacy · Loan · Medical education · Risk aversion (psychology) · Finance · Financial Literacy, Pension, Retirement Analysis · Fiscal Policy and Economic Growth · Housing Market and Economics · Medicine · Psychology

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  • Examining the Effects of Education Loans on College Student Transfer in the United States

    Open Access•Rong Chen, Angela Boatman•Research in Higher Education•2026

  • Developing and Validating New Measures of High School, College, and Graduate Students’ General Financial Knowledge in the United States

    Open Access•Katrina Borowiec, Angela Boatman•Journal of Family and Economic…•2026

  • Gender Differences in Financial Knowledge among College Students

    Open Access•Man Yao, Tori Rehr et al.•Journal of Family and Economic…•2023

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Obras citantes distintas9
Citações por ano1,29
Intervalo de citações2019 - 2026 (8)
Velocidade de citaçãocurrent
Altamente citadoNão
Tipos de citaçãoNeutras: 9
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