Constrained after College : Student Loans and Early Career Occupational Choices

@inproceedings{Rothstein2007ConstrainedAC,
  title={Constrained after College : Student Loans and Early Career Occupational Choices},
  author={Jesse Rothstein and Cecilia Elena Rouse},
  year={2007}
}
In the early 2000s, a highly selective university introduced a “no-loans” policy under which the loan component of financial aid awards was replaced with grants. We use this natural experiment to identify the causal effect of student debt on employment outcomes. In the standard life-cycle model, young people make optimal educational investment decisions if… CONTINUE READING