Between 2004 and 2017, the aggregated amount of outstanding student loans in the United States increased from $345 billion to $1,38 trillion, an increase of 300% over a little more than a decade. While this study partly explains the above increase, its aim is to determine whether outstanding student loans adversely affect a household’s ability to accumulate home equity. Median regression results of the 50th, 75th, 90th and 95th percentile all show negative association between home equity and outstanding student loans, with a decrease of -$0.32 to -$0.92 in homeequity for every $1 in outstanding student loans. The increasing burden of outstanding studentloans may pose a threat to the short- and long-term financial health of households in the United States.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:umu-160997 |
| Date | January 2019 |
| Creators | Lörtscher, Sandro |
| Publisher | Umeå universitet, Nationalekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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