Effect of Student Loans on Income Inequality in the United States

Authors

  • Ashraf Ahmed Keyano College
  • M. Adnan Kabir University of Liberal Arts Bangladesh

DOI:

https://doi.org/10.33423/jabe.v21i8.2575

Keywords:

Business, Economics, Student loans, Income Inequality, Fixed Effect, higher education, United States

Abstract

Student loan is a pervasive problem in the United States. Historically, higher education has been a major driver of intergenerational mobility in the United States. The current student loan has increased substantially over the years, surpassing credit card and auto loans. Using panel data from all States, this paper attempts to empirically predict if income inequality is affected by student loans. Statistical analysis points towards student loan exacerbating income inequality. Other variables such as private college tuition and household poverty have a highly significant negative effect on income inequality. The overall results suggest that increased access to higher education at the expense of higher student loans may be countervailing to the income distribution dynamics of the United States.

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Published

2019-12-30

How to Cite

Ahmed, A., & Kabir, M. A. (2019). Effect of Student Loans on Income Inequality in the United States. Journal of Applied Business and Economics, 21(8). https://doi.org/10.33423/jabe.v21i8.2575

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Section

Articles