Student Debt Research Articles

Physical therapy students’ perceived levels and sources of stress during clinical education experiences

Purpose: Stress has been linked to poor performance and mental health disorders in health professions students. Very little is known about health professions students’ stress during clinical education. The purpose of this study was to explore the levels and sources of stress experienced by Doctor of Physical Therapy (DPT) students during the clinical education portion of their curriculum. Methods: In this cross-sectional, descriptive study, 925 first-, second-, and third-year DPT students from eight Midwestern colleges and universities were invited to complete an electronic survey during a clinical experience. The survey included demographic information, the 10-item Perceived Stress Scale (PSS), and the Undergraduate Sources of Stress (USOS) scale. Results: The response rate was 28% with a total of 259 returned surveys. The mean PSS score was 14.15 out of a possible 40, with a range from 0 to 30. There were significant differences in levels of stress based on program year and clinical level. No significant differences in level or sources of stress were noted based on gender or clinical setting. Academic sources were the greatest source of stress reported. Amount of student debt and percentage of responsibility for graduate education were significantly correlated with financial sources of stress. Conclusion: Participants in this study reported mean PSS scores during clinical education experiences similar to those previously reported for physical therapy. Identifying perceived stress levels, sources of stress, and mitigating factors has the potential to improve the health of students and positively impact patient care.

Financial well-being, anxiety and payment delinquency among student loan holders in the United States: insights from the COVID-19 pandemic

PurposeThe COVID-19 pandemic presented unprecedented challenges, particularly intensifying the financial and psychological burden for individuals with student loans in the United States. Firstly, this study examined the association between student loan ownership and financial well-being during the pandemic. Secondly, among student loan holders, we tested the association of financial anxiety and payment delinquency with COVID-19 shocks and financial knowledge. Lastly, we investigated the associations between the recipients of student loans and their financial well-being, anxiety and behaviors concerning student loans.Design/methodology/approachUtilizing data from the 2021 National Financial Capability Study, we explored how unprecedented economic disruptions have affected student loan holders' financial well-being, levels of debt anxiety and payment delinquency, considering financial knowledge as a critical factor. We conducted Ordinary Least Squares (OLS) and logistic regressions to examine the associations addressed in the purpose of the study.FindingsThe results of regression analyses indicate that individuals with student loans generally experienced lower financial well-being than those without loans. Among student loan holders, COVID-19 shocks were positively associated with student loan anxiety and payment delinquency. Additionally, subjective financial knowledge showed a positive association, while objective financial knowledge displayed a negative association with loan delinquency. Lastly, respondents who secured loans for themselves exhibited lower levels of financial well-being than other student loan holders.Originality/valueThis study represents one of the initial efforts to investigate the issues of financial well-being, debt anxiety and payment delinquency among student loan holders, along with their associations with the potential COVID-19 shocks they experienced. The research shed light on the acute financial stress and mental health challenges faced by student loan holders during global crises, highlighting the significance of effective policy development for student debt management and borrower support during times of economic uncertainty.

The Effect of Student Loan Debt on Emergency Savings and the Moderating Role of Financial Knowledge: Evidence from the U.S. Survey of Household Economics and Decisionmaking

This study examines data from the U.S. 2018 and 2019 Survey of Household Economics and Decision making (SHED) to understand the association between student loan debt and emergency-saving decisions, including the moderating role of financial knowledge. Controlling self-selection bias through a propensity score and coarsened exact matching approach, the findings reveal that individuals with student loan debt are less likely to save for financial emergencies. The findings also show that financial knowledge is positively associated with a higher likelihood of having emergency savings. Furthermore, the results from the moderating analysis indicate a statistically significant interaction effect. Based on the empirical results and the corresponding interaction plots, the findings suggest that targeted financial education may lead to improved financial outcomes for student loan borrowers, rather than assuming that such education occurred prior to a loan application.

Student Loans, Access to Credit, and Consumer Credit Demand

Abstract This paper provides novel evidence that increased student loan debts, caused by rising tuitions, increase borrowers’ demand for additional consumer debt, while simultaneously restricting their ability to access it. The net effect of student loan debt on consumer borrowing varies by market, depending on whether the supply or demand channel dominates. In loosely underwritten credit markets, increased student loan debt causes borrowing to increase, while in tightly underwritten markets, increased student loan debt reduces credit use. These findings match predictions of a standard life cycle model of household consumption and borrowing, augmented by a realistic student loan repayment contract. (JEL G51, D15, I22, D14)

From Institutional Trauma to Institutional Healing

The societal struggles in American higher education have intensified in recent years, impacting various facets of academic life. Enrollment declines, rising costs, student debt, and emerging alternatives pose significant threats to colleges and universities. The COVID-19 pandemic further strained institutions, leading to deeper budget cuts and potential closures. Falling tuition revenue coupled with culture wars and political polarization have led to prolonged institutional trauma in higher education institutions. Conservative-leaning states have restricted faculty tenure, courses dealing with social and political inequity, and DEI initiatives, while progressives emphasize universities’ role in fostering critical thinking and truth. Organizational trauma can significantly impact an organization’s well-being. It can arise from a single catastrophic event or persistent issues such as workplace biases, discrimination, and poor communication. For many campuses, this manifests as chronic stress, apathy, and mental health challenges, leading to turnover of faculty and staff and low productivity. Understanding and addressing organizational trauma is crucial. Strategies include fostering resilience through supportive leadership, trust-building, and inclusive practices. Thoughtful solutions and collective efforts are needed to heal and strengthen American democracy. The 2024 elections remain uncertain, raising questions about the future of not only higher education, but American democracy. Addressing these challenges requires a concerted effort to bridge divides, promote critical thinking, and uphold the purpose of higher education. The path forward remains complex, but collective action is essential to repair and strengthen American civic health.

Are They Prepared? Comparing Intern Milestone Performance of Accelerated 3-Year and 4-Year Medical Graduates.

Accelerated 3-year programs (A3YPs) at medical schools were developed to address student debt and mitigate workforce shortage issues. This study investigated whether medical school length (3 vs 4 years) was associated with early residency performance. The primary research question was as follows: Are the Accreditation Council for Graduate Medical Education Milestones (MS) attained by A3YP graduates comparable to graduates of traditional 4-year programs (T4YPs) at 6 and 12 months into internship? The MS data from students entering U.S. medical schools in 2021 and 2022 from the 6 largest specialties were used: emergency medicine, family medicine, internal medicine, general surgery, psychiatry, and pediatrics. Three-year and 4-year graduates were matched for analysis (2,899 matched learners: 182 in A3YPs and 2,717 in T4YPs). The study used a noninferiority study design to examine data trends between the study cohort (A3YP) and control cohort (T4YP). To account for medical school and residency program effects, the authors used cross-classified random-effects regression to account for clustering and estimate group differences. The mean Harmonized MS ratings for the midyear and end-year reporting periods showed no significant differences between the A3YP and T4YP groups (mean [SE] cross-classified coefficient = 0.01 [0.02], P = .77). Mean MS ratings across internal medicine MS for the midyear and end-year reporting periods showed no significant differences between the A3YP and T4YP groups (mean [SE] cross-classified coefficient = -0.03 [0.03], P = .31). Similarly, for family medicine, there were no statistically significant differences between the A3YP and T4YP groups (mean [SE] cross-classified coefficient = 0.01 [0.02], P = .96). For the specialties studied, there were no significant differences in MS performance between 3-year and 4-year graduates at 6 and 12 months into internship. These results support comparable efficacy of A3YPs in preparing medical students for residency.

Implementing open educational resources: Lessons learned

BackgroundOpen educational resources (OER) are associated with several positive outcomes for undergraduate and graduate students, both financially and academically. Financial benefits include a reduction in student debt and costs of attending college. Academic benefits include improved academic success, especially for students from populations historically underserved by higher education. PurposeThis article reviews strategies and lessons learned from an academic multi-campus school of nursing (SON) initiative on implementing OER. ApproachA team representing undergraduate and graduate nursing faculty, the library, and the Teaching and Learning Center set forth to improve faculty awareness of and interest in adopting OER and develop resource sites for disseminating information about OER. The team collaborated with partners within the university and with external academic partners to achieve our goals. OutcomesPresentations to SON faculty on OER identified faculty interested in adopting these resources. Two Masters of Nursing Education (MNE) students identified and shared resources; completed a student textbook survey; and, reported results and recommendations to SON faculty. A university resource site was created on OER. Further collaboration with university librarians to identify and implement OER for specific courses is ongoing. ConclusionsStudents identified cost as one barrier for pursuing higher education. Efforts to reduce cost through utilizing OER may eliminate this barrier, thus enhancing student enrollment and persistence in higher education. Adopting OER is a social justice action that has the potential to address educational inequities by allowing students to attend to their basic human needs such as housing and food.

The moral economy of student debt: A pharmacological approach

Over the past three decades, student debt has surged in most English-speaking countries. Despite this trend, enrollment at universities has steadily risen, which testifies to the enduring appeal that higher education still exerts on middle-class individuals and families. Nevertheless, the policies responsible for this growing indebtedness have also stirred up their share of controversy. In an attempt to make sense of these debates, this article focuses mainly on the English and American cases to demonstrate how moral arguments have been put forth both in favor of and against using credit to finance education. Because it shows the ambivalent and unstable nature of the normative principles underpinning debt relations, the concept of moral economy is particularly well suited to discuss this phenomenon. On one hand, it explains how certain ethical expectations seemingly justify the need to incur debt for educational pursuits. On the other hand, it also shows why the perceived legitimacy of student debt eventually comes to be challenged. At its core lies an undecidable choice between antinomic values, as the decision to study on credit involves both a striving for personal autonomy and subjecting oneself to an exploitative relation of dependence. Recognizing this fundamental ambivalence, the article develops a ‘pharmacological approach’ to address the issue of student debt, aiming to better grasp the social and political tensions surrounding higher education in neoliberal societies.

Symbolic violence, social control, and student loan programmes: the subterranean complexes

ABSTRACT Government-backed student loans are not a panacea for educational inequality or social ills. By examining student loans as a means of social control, Bourdieu’s concept of symbolic violence can provide novel ways to encapsulate debt-response patterns across cultures and geographies. This gentle, invisible violence creeps in via misrecognition, a process that encompasses rationalising indebtedness and attaching latent meaning or emotional weight to student debt. Student debt is, first, internalised as a regular and reliable part of life, whether through income-contingent repayment or traditional mortgage-style programmes. Also present is the gradual internalisation of gratitude, trust, and obligation. Deferment or delinquency is subsequently interpreted as a sign of personal inadequacy. In essence, symbolic violence establishes a missing link between an individual’s subjective experience and institutional structural barriers. It disrupts commonly held assumptions on marketisation, private return, and individual responsibility in top-down neo-liberal discourse, informing student loan policy through a multidimensional lens.

A collaborative model to restore racial diversity in the teaching profession

Abstract Sixty-eight years after the Brown v. Board of Education decision led to a national reduction of teachers of color, even as numbers of students of color grew, a collaborative effort to racially re-diversify the education profession is forming in the Dayton, Ohio region. This article describes this ongoing movement to increase the number of racially and ethnically marginalized educators, led by seven school districts, five institutions of higher education (IHEs), a county educational services center, and two nonprofit organizations. Initial work was supported by leveraging grant funds. The project seeks to (1) identify seventh- through eleventh-grade students interested in becoming educators, (2) direct students into model pathways and critical supports from high school through college graduation and licensure, (3) offer support for minoritized future and new teachers that fosters confidence and promotes belonging, and (4) facilitate the emergence of collectively-designed professional development for continuous renewal of culturally responsive and inclusive cultures in all education spaces. Strategies include identifying prospective teachers within high schools, establishing peer cohorts, facilitating critical mentoring, mapping grow-your-own pipelines and pathways, providing support at crucial stages in college, developing positive cultures in programs and districts, facilitating ongoing professional development that centers marginalized perspectives, and providing logistical support for emerging networks and organic affinity groups. Lack of support, student debt, isolation, discrimination, and unwelcoming and unresponsive school environments are common barriers that require ongoing dismantling.

Blame, Policy Feedback, and the Politics of Student Debt Relief Policy

Blame, Policy Feedback, and the Politics of Student Debt Relief Policy

A PRELIMINARY STUDY ON DEBT PERCEPTION TOWARDS MALAYSIAN UNIVERSITY STUDENT

Debt has become an increasingly worrying issue among students of higher education institutions in Malaysia. A pilot study was conducted using survey techniques to assess the level of financial knowledge, attitudes, and practices among 33 students from faculty accounting at Universiti Teknologi Mara Kota Kinabalu Branch, Sabah. The research instrument consisted of structured questionnaires. The pilot study findings indicate a significant gap between respondents' knowledge, attitudes, and financial practices. Therefore, a full-scale study is proposed to investigate the perception of debt among students at this university in greater depth. The findings from this study are hoped to assist the university and government in formulating appropriate awareness and intervention programs to address student debt issues.

Borrow now, pay even later: A quantitative analysis of student debt payment plans

In the U.S., student debt is currently the second largest component of consumer debt. Households are required to repay these loans early in their lifecycle, when marginal utility is particularly high. We study alternative contracts that offer partial or full payment deferral until later in life. We calibrate an economy with the current contracts, and then solve for counterfactual equilibria. The alternative contracts yield large welfare gains, which are robust to assumptions about the behavior of the lenders and borrower preferences. The gains are similar to those that could come from the debt relief program currently being considered in the U.S., but without its adverse fiscal implications.

Student Debt Associated with Entry-level Athletic Training Education.

Borrowers burdened by high student debt generally experience financial constraints that can impact them both personally and professionally. To date no published data exists that profiles the education-related debt accrued by entry-level certified athletic trainers. To assess the scope and scale of student debt associated with the completion of an entry-level athletic training degree. Cross-sectional study. Online web-based survey. Participants were recruited with assistance from the National Athletic Trainers' Association, who disseminated the survey to 18,689 certified athletic trainers who were members in good standing and who had earned their certification between 2004 and 2022. A total of 2,271 individuals accessed the survey. The overall amount of student debt incurred to complete an entry-level degree in athletic training and the initial monthly repayment amount were collected from survey respondents. Education-related debt-to-income ratio (DTIR) and monthly payment DTIR which are measures of financial health/stability were also calculated from the acquired survey data. Among athletic trainers who took out student loans, the average amount owed by entry-level athletic trainers for the period spanning 20042022 was $61,717, with an average initial monthly loan payment amount reported to be $453. The mean education related DTIR calculated from respondents was 169%, which exceeded the benchmark value of 100% recommended within the finance industry. Also, the average monthly payment DTIR calculated from study participants was .144, which approached the recommended acceptable upper-limit of .15. Education-related DTIR and monthly payment DTIR values reported by respondents suggests the potential for entry-level athletic trainers to experience financial challenges related to their student debt.

The Evolution of Student Debt 2019–2022: Evidence from the Survey of Consumer Finances

In recent years, economists and policymakers have been interested in the burden of student debt across socioeconomic groups. In this Economic Commentary, we use the two most recent waves of the Survey of Consumer Finances, collected in 2019 and 2022, to study changes in the joint distribution of student debt and two measures of “ability-to-pay,” income and net worth. We find that between 2019 and 2022, both the fraction of families with student debt and real student debt per family were essentially unchanged, and aggregate student debt fell as a fraction of aggregate income and net worth. However, over the same period, the distribution of student debt shifted toward higher-income and wealthier families, with a rise in the average student debt in the highest quintile of both income and net worth. Further, this shift was not driven by changes in the distribution of debtors, but, instead, in the amount of debt per family.

The Business of Stealing Futures: Race, Gender, and the Student Debt Regime

In this paper, we argue that the system of student debt functions as one of the most egregious and yet poorly understood mechanisms by which structural racism is reproduced in the U.S. today. We present evidence that student debt is unevenly distributed across race and gender, show that this pattern arises from policy choices made over time, and demonstrate that these disparities play a significant role in maintaining and exacerbating racial and gender wealth gaps. Our paper contends that the student debt crisis not only erodes the core principles of higher education but also perpetuates a cycle of racial and gender inequality and given the crucial role played by business corporations, urges scholars of business ethics to pay attention to this issue.

Gender Stratification, Racial Disparities, and Student Debt Trajectories in the United States

In the United States, post-secondary educational outcomes are stratified by gender, with women attending college and completing their degrees at higher rates. At the same time, student loan debt has become an ubiquitous part of the college process for many pursuing higher education, increasing the financial risks associated with the pursuit of higher education while lessening the financial rewards. Using data from the National Longitudinal Survey of Youth 1997 (NLSY97) of young adults who ever attended a post-secondary institution and growth curve models, we estimate gender disparities in student debt trajectories throughout young adulthood. Building on work on the racialization of the student debt landscape (Houle & Addo 2022), we also investigate the intersection of race and gender, and include both within race gender analyses and within gender racial analyses. Gender differences in student debt at baseline, or at the age of first college enrollment, are large and the gender debt gap grows at 1.2% per year. We document evidence of a curvilinear relationship in student debt in young adulthood, with student debt accumulating at the beginning of the college enrollment period and the rate of increase declining over time as adults age. Women, who start the period with larger amounts of student debt, experience faster growth in their debt accumulation followed by lower declines relative to young adult men. These patterns are magnified among Black young adults, with the gender debt disparity between Black women and Black men growing 3.4% annually. We find no association between gender and student debt trajectories among Latinx and White young adults. Within-gender models highlight the prevalence of the student debt crisis among Black women and Black men. Additional analyses suggest gender differences in debt trajectories are a function of postsecondary and young adult socioeconomic characteristics, reflecting broader societal inequalities that stem from structural elements related to post-secondary schooling and economic status. These patterns may inhibit wealth-building among women and Black adults in the United States.

A Review of the Federal Student Loan Debt Relief Plan

The Biden-Harris Administration's federal student loan debt relief plan aims to relieve student loan debt burdens from the United States. Their relief plan impacts the overarching national economy with multifaceted effects on the economy and attainment of vital life milestones. This paper explores the multifaceted effects and their impacts. It utilizes a Cost-Benefit Analysis to assess the potential limitations and transformative impact the plan could have on America’s socio-economic landscape. The contents of this paper highlight the complex interplay between the economy and societal well-being and the many factors that affect policymaking.

The (Non)Taxation of Student Debt Cancellation: Statutory Misinterpretation and Normative Conflict

The (Non)Taxation of Student Debt Cancellation: Statutory Misinterpretation and Normative Conflict

Perceived returns and regrets among college graduates

ABSTRACT We contribute to the higher education returns discourse by examining perceptions among college graduates. Using 2021 U.S. Survey of Household Economics of Decisionmaking data, we observe that over 80% of degree holders perceive that they received positive financial returns from college, while only 7% of college degree holders regret their decision to go to university. However, 39% regret their major choice, and 24% regret their institution choice. Logistic regression reveals perceptions and regrets vary with field of study, gender, type of institution attended, student debt load, and age.