Corpus ID: 16636511

Pricing , Selection , and Welfare in the Student Loan Market : Evidence from Borrower Repayment Decisions [

  title={Pricing , Selection , and Welfare in the Student Loan Market : Evidence from Borrower Repayment Decisions [},
  author={Natalie Cox},
Advances in data-driven underwriting have both e ciency and equity implications for consumer lending markets where private and public credit options coexist. In the $1 trillion student loan market, private lenders now o↵er a growing distribution of risk-based interest rates, while the federally-run loan program sets a break-even, uniform interest rate. In this paper, I measure the overall gains in consumer surplus from such risk-based pricing and quantify the redistributional consequences of… Expand
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