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Student loan and credit risk in Korea

Author

Listed:
  • Han, Byung-Suk
  • Kang, Hyoung-Goo
  • Jun, Sang-Gyung

Abstract

This study first analyzes factors affecting default of student loans in Korea, using nationwide data. Default of student loans is a function of gender, major, loan balance, etc., being consistent with prior studies. However the effect of age and marital status in our analysis is not consistent with prior studies. We first document new variables affecting student loan defaults such as grace period and repayment period.

Suggested Citation

  • Han, Byung-Suk & Kang, Hyoung-Goo & Jun, Sang-Gyung, 2015. "Student loan and credit risk in Korea," Economics Letters, Elsevier, vol. 135(C), pages 121-125.
    • Handle: RePEc:eee:ecolet:v:135:y:2015:i:c:p:121-125
    DOI: 10.1016/j.econlet.2015.08.018
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    References listed on IDEAS

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    1. Knapp, Laura Greene & Seaks, Terry G, 1992. "An Analysis of the Probability of Default on Federally Guaranteed Student Loans," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 404-411, August.
    2. Thomas A. Flint, 1997. "Predicting Student Loan Defaults," The Journal of Higher Education, Taylor & Francis Journals, vol. 68(3), pages 322-354, May.
    3. Schwartz, S. & Finnie, R., 2002. "Student loans in Canada: an analysis of borrowing and repayment," Economics of Education Review, Elsevier, vol. 21(5), pages 497-512, October.
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    Citations

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    Cited by:

    1. José Alberto Fuinhas & Victor Moutinho & Estefano Silva, 2019. "Delinquency and Default in USA Student Debt as a Proportional Response to Unemployment and Average Debt per Borrower," Economies, MDPI, vol. 7(4), pages 1-16, October.

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    More about this item

    Keywords

    Korea; Student loan; Default; Consumer finance; Credit risk;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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