Impact Of Student Loans On Student's Life And The Financial Value Of A Degree

Erin Velez, Melissa Cominole & Alexander Bentz (2019) Debt burden after college: the effect of student loan debt on graduates’ employment, additional schooling, family formation, and home ownership

Articles core question- How does debt affect students' lives after earning their bachelors’ degree

Research method

Longitudinal survey was conducted on around 12,000 graduates over a four year period.

Summarize findings

They found that the students were much more likely to have higher earning jobs and jobs that require bachelor's degrees, students are making decisions based on their debt that they otherwise may not have made. Also those with more debt were less likely to get married and less likely to have children.

How research can be improved/expanded

The research was only done over a four year period so it was not able to see the long term effects that debt has on borrowers. Things may change after the debt is eventually paid off. Also, debt does not affect everyone equally, it would be good to see how it affects people that do not complete their degree.

This study shows that student debt has a negative impact on students in the short term. The students are forced to go into jobs simply because they pay well. It is also very difficult for the students to commit to meaningful relationships like marriage and children because of their financial burden.

Baker, A. R. & Montalto, C. P. (2019). Student Loan Debt and Financial Stress: Implications for Academic Performance

Articles core question- How does debt affect students academic performance?

Research method

A survey was randomly given to 5000 undergraduates,data was analyzed of 299 students

Summarize findings

Students with financial stress had lower GPAs 1 year later. This was more true of students of Colour than of White students. Students of Colour may have a harder time getting help to pay for loans, increasing their stress of loan reliance. This may also build on stresses that students of Colour may already be facing.

How research can be improved/expanded

This study was only done on at one university, there should be a larger sample size of different institutions and more diverse group of students. Also, there may be other factors other than finances that are variables in academic performance.

This study outlines how debt affects students while they are currently enrolled at the university. It clearly has a negative impact at this time as well. The stress and responsibility placed on students can be too much too handle, and it is reflected in their academic performance. Students of Colour were shown to have more difficulty, as they may come from underprivileged backgrounds and will have a more difficult time paying off their debt.

Bento J. Lobo & Lisa A. Burke-Smalley (2018) An empirical investigation of the financial value of a college degree

Articles core question- How much is a college degree worth now?

Research method

Review relevant data on average income of college graduates to high school graduates. A model was used to calculate income of bachelor degrees students by accounting for the variables of tuition, books, and foregone earnings.

Summarize findings

Despite the setback, the average student with a bachelor's degree makes much more than the average high school graduate.

How research can be improved/expanded

This study does not consider the major of the student with the bachelor's degree. The type of major will have an impact on income, making the study more specific to degree.

This study shows that there is benefit in a degree, but over a long period of time. There are initial costs of attending postsecondary, but it is a safe investment if you are able to achieve your bachelors degree.