Abstract
What fraction of college-age youths in the United States comes from liquidity-constrained families? This question is important
because such youths may have difficulties borrowing for college education and be less likely to enroll. While most earlier
studies have concluded that credit constraints in education are not pervasive, these studies have relied on indirect measures
and data sources from the 1980s. The contribution of this descriptive study is the use of parents’ reports of borrowing limitations
in the National Longitudinal Survey of Youth (NLSY79) Young Adult Supplement to evaluate the pervasiveness of credit constraints
in the early 2000s. The results indicate that about 20 percent of college-age youths are potentially credit-constrained and
are less likely to attend college.
because such youths may have difficulties borrowing for college education and be less likely to enroll. While most earlier
studies have concluded that credit constraints in education are not pervasive, these studies have relied on indirect measures
and data sources from the 1980s. The contribution of this descriptive study is the use of parents’ reports of borrowing limitations
in the National Longitudinal Survey of Youth (NLSY79) Young Adult Supplement to evaluate the pervasiveness of credit constraints
in the early 2000s. The results indicate that about 20 percent of college-age youths are potentially credit-constrained and
are less likely to attend college.
- Content Type Journal Article
- Category Original Paper
- Pages 1-15
- DOI 10.1007/s10834-012-9322-3
- Authors
- Olga V. Sorokina, Financial Services Regulatory Practice, PriceWaterhouseCoopers LLP, 1800 Tysons Boulevard, McLean, VA 22102, USA
- Journal Journal of Family and Economic Issues
- Online ISSN 1573-3475
- Print ISSN 1058-0476