Student Loan Debt and Financial Hardships in Health Care Utilization

Abstract

This study examines the association between student loan debt and financial hardships in health care utilization among young adults, with a focus on differences by race. This study analyzes data from the 2018 National Financial Capability Study, a publicly available data set, and includes 4,535 young adults in the age groups of 24–35 years. The study results show that student loan debt was related to financial hardships in health care utilization, measured with unpaid medical bills and missed health care services because of costs, after controlling for a range of socioeconomic factors as well as measures of financial knowledge and behaviors. In addition, student loan debt had additional negative influence on missed health care services for minority young adults. Further analyses indicate that among young adults who had outstanding student loans, those with late loan payments were more likely to have unpaid medical bills and missed health care services, compared to those without late loan payments. These findings inform helpful policy and practice implications for improving financial status of young adults with student loans, especially those with late loan payment and minority young adults.