NotesFAQContact Us
Search Tips
ERIC Number: EJ905709
Record Type: Journal
Publication Date: 2008
Pages: 23
Abstractor: As Provided
Reference Count: 20
ISSN: ISSN-0884-9153
What Determines the Amount Students Borrow? Revisiting the Crisis-Convenience Debate
Hart, Natala K.; Mustafa, Shoumi
Journal of Student Financial Aid, v38 n1 p17-39 2008
Recent studies have questioned the wisdom in blaming college costs for the escalation of student loans. It would appear that less affluent students borrow large amounts because inexpensive subsidized loans are available. This study attempted to verify the claim, estimating a model of the amount of loan received by students as a function of net total costs after grants, scholarships, and tuition discounts, and of the availability of subsidized loans. Results showed large effects of net cost, especially for poor students, who used low interest subsidized loans to replace more expensive loans. In contrast, middle-income students increased borrowing in response to increased availability of subsidized loans, although such responses were small relative to the impact of net costs. (Contains 4 tables and 7 figures.)
National Association of Student Financial Aid Administrators. 1101 Connecticut Avenue NW Suite 1100, Washington, DC 20036. Tel: 202-785-0453; Fax: 202-785-1487; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Research
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Ohio