The Effect of Changing Unemployment Rates on Student Loan Cohort Default Rates
de Brauw, Alan
In recent years, student loan cohort default rates have come under heightened scrutiny regarding the effectiveness of federal financial aid. In order to better inform policy makers of student loan measures, my study assesses the impact of changing unemployment rates on student loan cohort default rates using fixed effects regression analysis. Changes in unemployment rates are shown to have a statistically significant effect on cohort default rates.
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