The Effect of Households’ Student Debt on Life Satisfaction

Thomas Korankye; Charlene M. Kalenkoski

doi:10.1007/s10834-021-09753-9

The Effect of Households’ Student Debt on Life Satisfaction

Thomas Korankye, Charlene M. Kalenkoski

Research output: Contribution to journal › Article › peer-review

10 Scopus citations

Abstract

This study finds a negative effect of holding student-loan debt on the life satisfaction of household heads using longitudinal data from the 2011 to 2017 U.S. Panel Study of Income Dynamics and a fixed-effects modeling approach. Although debt is taken to improve future utility, it provides disutility to the head of household until it is paid off. Thus, financial planners and educators should remind their clients about the consequences of holding student-loan debt in the short term, not just the future benefits.

Original language	English (US)
Pages (from-to)	757-772
Number of pages	16
Journal	Journal of Family and Economic Issues
Volume	42
Issue number	4
DOIs	https://doi.org/10.1007/s10834-021-09753-9
State	Published - Dec 2021
Externally published	Yes

Keywords

Life satisfaction
Mundlak correction
Student debt
Student loans
Well-being

ASJC Scopus subject areas

Social Psychology
Economics and Econometrics

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10.1007/s10834-021-09753-9

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abstract = "This study finds a negative effect of holding student-loan debt on the life satisfaction of household heads using longitudinal data from the 2011 to 2017 U.S. Panel Study of Income Dynamics and a fixed-effects modeling approach. Although debt is taken to improve future utility, it provides disutility to the head of household until it is paid off. Thus, financial planners and educators should remind their clients about the consequences of holding student-loan debt in the short term, not just the future benefits.",

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AB - This study finds a negative effect of holding student-loan debt on the life satisfaction of household heads using longitudinal data from the 2011 to 2017 U.S. Panel Study of Income Dynamics and a fixed-effects modeling approach. Although debt is taken to improve future utility, it provides disutility to the head of household until it is paid off. Thus, financial planners and educators should remind their clients about the consequences of holding student-loan debt in the short term, not just the future benefits.

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KW - Student loans

KW - Well-being

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The Effect of Households’ Student Debt on Life Satisfaction

Abstract

Keywords

ASJC Scopus subject areas

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