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Author: Chen, Hongyu
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Chen, Hongyu |
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Three Essays in Financial Aid and Education Ph.D. Dissertation, Department of Economics, The Ohio State University, 2018 Cohort(s): NLSY79, NLSY97 Publisher: ProQuest Dissertations & Theses (PQDT) Keyword(s): Assets; College Enrollment; Financial Assistance; Geocoded Data; Home Ownership; Student Loans / Student Aid; Wealth Permission to reprint the abstract has not been received from the publisher. My dissertation studies three essays in financial aid and education. Chapter one studies the impact of student loan forgiveness plans on life-cycle decisions. A series of changes in U.S. policy on student loan repayment plans occurred between 1993 and 2015. Before the changes in policy, student loan debts were not forgiven and borrowers were expected to repay the full amount of debt. After the changes in policy, borrowers were given options to relieve a portion of their debt, with the portion being a function of income and sector of employment (public and non-profit vs. private). To study the effect of changes in student loan repayment plans on schooling, work, and borrowing decisions, I propose and structurally estimate a life-cycle dynamic discrete choice model. My simulation results imply that changes in student loan repayment plans will increase total years of postsecondary schooling by 10%, from 2.06 years to 2.29 years. In addition, 0.5% of the population who would have worked in the private sector will shift to the public sector, and 15% of student loan borrowers will be forgiven part of their debt. Chapter two studies the impact of housing wealth on college enrollment in the housing boom and the housing bust. I take advantage of the recent housing boom and bust as an exogenous source of variation. I find that a $10,000 increase in home equity increases the probability of initial college enrollment by 0.19 percentage points. Housing wealth has a larger impact on college enrollment during the housing bust than during the housing boom. The asymmetry is only economically and statistically significant for families with lower annual incomes. According to my estimates, the decline in home equity during the housing bust would have caused a drop in college enrollment of 3.5 percentage points, or 9.6%, for families with income less than $70,000, other things equal. My results provide important implications for government financial aid policy. If the goal of the government is to maximize the college enrollment impact of a given level of financial assistance, it is useful for the government to implement a need-based counter-cyclical financial aid policy. Chapter three studies the long-term effects of kindergarten enrollment on individuals' educational and social outcomes. |
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Bibliography Citation
Chen, Hongyu. Three Essays in Financial Aid and Education. Ph.D. Dissertation, Department of Economics, The Ohio State University, 2018. |