The Effect of Student Loan Debt on Spending: The Role of Repayment Format

Autor:	Yi Zhang, Ronald T. Wilcox, Amar Cheema
Rok vydání:	2019
Předmět:	Marketing Economics and Econometrics 0502 economics and business 05 social sciences 050211 marketing 050207 economics Business and International Management
Zdroj:	Journal of Public Policy & Marketing. 39:305-318
ISSN:	1547-7207 0743-9156
Popis:	Across three studies, the authors investigate the effect of student loan debt on spending. Evidence from consumer finance data and experimental scenarios reveals that borrowers with moderate student loan debt are less likely to spend than people with low (or no) debt. However, borrowers with high debt are more likely to spend relative to those with moderate debt. The latter effect is consistent with goal disengagement, as paying off high student loan debt seems difficult. Importantly, the spending propensity associated with high student loan debt is attenuated by presenting the debt in a monthly payment (vs. lump-sum) format, which reduces perceived payoff difficulty. From a public policy perspective, the authors recommend that estimated monthly payments be included in all student loan disclosures.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::127377fdd228885a78c9d793d9c65daa https://doi.org/10.1177/0743915619847465 Zobrazit plný text záznamu