The effects of state performance funding policies on student loan debt

Robert Kelchen, Justin Ortagus, Kelly Rosinger, Alex Cassell

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

Performance-based funding (PBF) policies are an increasingly common way for states to tie funding for public colleges and universities to student outcomes. Yet amid growing concerns about student debt, the potential exists for PBF to affect student debt and ability to repay loans in both intended and unintended ways. In this paper, we use the first comprehensive dataset of PBF policies to examine the effects of PBF on student debt. We found no effects of PBF on student debt in the two-year sector and some evidence of increased debt among university students from more affluent families.

Original languageEnglish (US)
Article number102328
JournalEconomics of Education Review
Volume91
DOIs
StatePublished - Dec 2022

All Science Journal Classification (ASJC) codes

  • Education
  • Economics and Econometrics

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