Dongbin Kim


Student borrowing has more than doubled in the past decade, increasing the importance of understanding how student borrowing affects degree attainment. This study examines the impact of borrowing on degree attainment rates of students who attended four-year colleges and universities during 1994-1999. The results show that an increase of$1, 000 has a significant positive impact on degree attainment. However, the influences of loans are not consistent across parental income levels. Loans are significant positive predictors for students of medium parental income but not for lower or higher parental income students.