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Start Over Author "Neilson, Christopher" Journal american economic review
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4. Connecting Student Loans to Labor Market Outcomes: Policy Lessons from Chile†.

Author

Beyer, Harald, Hastings, Justine, Neilson, Christopher, and Zimmerman, Seth

Subjects
ECONOMIC conditions in Chile, 1988-, STUDENT loans, LABOR market, STUDENT financial aid laws, ACADEMIC degrees, ACADEMIC programs, COLLEGE graduates, COLLEGE majors, ECONOMICS, ECONOMIC history
Abstract

Rising student loan default rates and protests over debt suggest that many students make college enrollment and financing choices they regret. Policymakers have considered tying the availability of federally subsidized loans at degree programs to financial outcomes for past students. This paper considers the implementation of such a policy in Chile. We describe how loan repayment varied by degree type at baseline, the design of the loan reform, and how earnings-based loan caps change availability of loans and incentives for students and higher education institutions. We discuss the challenges facing policymakers seeking to link loan availability to earnings outcomes. [ABSTRACT FROM AUTHOR]

Published
2015
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