The effects of state performance funding policies on student loan debt

Robert Kelchen; Justin Ortagus; Kelly Rosinger; Alex Cassell

doi:10.1016/j.econedurev.2022.102328

The effects of state performance funding policies on student loan debt

Robert Kelchen
, Justin Ortagus
, Kelly Rosinger
, Alex Cassell

Education Policy Studies

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

3 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 language	English (US)
Article number	102328
Journal	Economics of Education Review
Volume	91
DOIs	https://doi.org/10.1016/j.econedurev.2022.102328
State	Published - Dec 2022

All Science Journal Classification (ASJC) codes

Education
Economics and Econometrics

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10.1016/j.econedurev.2022.102328

Cite this

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title = "The effects of state performance funding policies on student loan debt",

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.",

author = "Robert Kelchen and Justin Ortagus and Kelly Rosinger and Alex Cassell",

note = "Funding Information: Our research design is preregistered through the Open Science Framework at https://osf.io/5ehdg. We are grateful to Arnold Ventures, the Joyce Foundation, and the William T. Grant Foundation for their financial support of this research. We are grateful for excellent research assistance from Lynneah Brown, Karly Caples, Junghee Choi, Garam Chu, Sam Riggs, Yahya Shamekhi, and Nicholas Voorhees. We appreciate the feedback and suggestions during data collection from our advisory board members: Alisa Hicklin Fryar, Tiffany Jones, and David Tandberg. Publisher Copyright: {\textcopyright} 2022 Elsevier Ltd",

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language = "English (US)",

volume = "91",

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AU - Ortagus, Justin

AU - Rosinger, Kelly

AU - Cassell, Alex

N1 - Funding Information: Our research design is preregistered through the Open Science Framework at https://osf.io/5ehdg. We are grateful to Arnold Ventures, the Joyce Foundation, and the William T. Grant Foundation for their financial support of this research. We are grateful for excellent research assistance from Lynneah Brown, Karly Caples, Junghee Choi, Garam Chu, Sam Riggs, Yahya Shamekhi, and Nicholas Voorhees. We appreciate the feedback and suggestions during data collection from our advisory board members: Alisa Hicklin Fryar, Tiffany Jones, and David Tandberg. Publisher Copyright: © 2022 Elsevier Ltd

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N2 - 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.

AB - 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.

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VL - 91

JO - Economics of Education Review

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ER -

The effects of state performance funding policies on student loan debt

Abstract

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