Student loans or marriage? A look at the highly educated

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Dora Gicheva, Assistant Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: I examine the relationship between student loans and marital status among individuals considering or pursuing graduate management education. Using data from a panel survey of registrants for the Graduate Management Admission Test, I show that the amount of accumulated student debt is negatively related to the probability of first marriage. The strength of the relationship diminishes with age, more so for women than for men. At the median age for the sample (24 years at test registration), the estimated decrease over a seven-year period is between 3 and 4 percentage points per $10,000 in student debt for men and a percentage point lower in absolute value for women. I use information on reported marriage expectations to show evidence that education expenditures and the amount of debt are correlated with anticipated marital status, but borrowers may not have perfect foresight about the long-term consequences of accumulating student debt.

Additional Information

Publication
Economics of Education Review, 53, 207-216
Language: English
Date: 2016
Keywords
Student loans, Timing of marriage, Education expenditures

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