Insuring College Failure Risk ∗

  title={Insuring College Failure Risk ∗},
  author={Satyajit Chatterjee and Felicia Ionescu},
Under current law, participants in (college) student loan program must repay their loan in full regardless of whether they complete college. Dropout rate among college students from low-income background is anywhere between 33 to 50 percent. The combination of lack of family resources, unconstrained access to student loans and high dropout rates means that for a substantial fraction of low-income students the attempt to acquire a college degree ends in low earnings and high indebtedness. In… CONTINUE READING