How are parents affected by their kid going to college? How are they affected when their kid gets a scholarship or grant? New working paper with @palaashbhargava.bsky.social @econsandy.bsky.social @odedgurantz.bsky.social and Rob Fairlie www.nber.org/papers/w33497 - ThreadSky

About ThreadSky

jeffdenning.com • 4 days ago

How are parents affected by their kid going to college? How are they affected when their kid gets a scholarship or grant?

New working paper with @palaashbhargava.bsky.social @econsandy.bsky.social @odedgurantz.bsky.social and Rob Fairlie

https://www.nber.org/papers/w33497

Comments

jeffdenning.com•4 days ago

As college costs and student debt have risen, many papers have been written asking how this affects students schooling, earnings, etc. Up until now, we've known very little about how parents are affected.

We show that ignoring parents misses a big piece of the puzzle.

jeffdenning.com•4 days ago

We use data from CA to link student financial aid data to parent outcomes. This allows us to show how parents are affected when their child goes to college. It also allows us to see how parents are affected when college is unexpectedly cheaper (via a grant).

jeffdenning.com•4 days ago

We borrow from the child penalty literature and show how parent finances evolve when their kid goes to college relative to parents whose kid has not yet gone to college but will soon

jeffdenning.com•4 days ago

Overall indebtedness doesn't increase, but parents shift debt from auto loans and credit cards to student loans. We find that parents also see increases in credit scores. We also see for lower income parents a reduction in overall delinquency and bankruptcy.

jeffdenning.com•4 days ago

Why is this? Hard to say for sure but it may be greater access to loans or a change in expenditures on kids when they go to college.

jeffdenning.com•4 days ago

The next part of the paper uses sharp discontinuities in the Cal Grant to study how the price of college affects families. We see very little effect on students. But, we see that parents reduce educational loans and HELOCs.

Posting Rules

Be respectful to others
No spam or self-promotion
Stay on topic
Follow Bluesky's terms of service

Comments

Posting Rules

Reply