Authors

Jonathan J. Fox, Iowa State UniversityFollow
Suzanne Bartholomae, Iowa State UniversityFollow
Jodi C. Letkiewicz, York UniversityFollow
Catherine P. Montalto, The Ohio State UniversityFollow

College Student Debt and Anticipated Repayment Difficulty

Abstract

This study analyzes factors associated with anticipated difficulty with repayment of debt accumulated during college using a basic model of credit risk that includes socialization processes influencing college student financial decisions. The empirical analysis uses data from the 2010 Ohio Student Financial Wellness Study. Results provide evidence of male overconfidence in financial decision making, as males are less likely than females to predict repayment difficulties. Socialization process variables, including financial management practices, financial parenting communication, and expected economic returns from education, are strongly associated with anticipated debt repayment difficulty. Inclusion of these process variables in the model results in loss of explanatory power of many of the traditional individual success variables, such as grade-point average, and graduation plans.

Recommended Citation

Fox, Jonathan J.; Bartholomae, Suzanne; Letkiewicz, Jodi C.; and Montalto, Catherine P. (2017) "College Student Debt and Anticipated Repayment Difficulty," Journal of Student Financial Aid: Vol. 47 : Iss. 2 , Article 6.
DOI: https://doi.org/10.55504/0884-9153.1576
Available at: https://ir.library.louisville.edu/jsfa/vol47/iss2/6