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Student Loans, Health, and Life Satisfaction of US Households: Evidence from a Panel Study

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  • Jinhee Kim

    (University of Maryland)

  • Swarn Chatterjee

    (University of Georgia)

Abstract

As student loan debt among US households continues to rise, the resulting debt burden may have consequences for multiple aspects of life, including household health and well-being. Using panel data from 2011, 2013, and 2015 waves of the Panel Study of Income Dynamics (PSID), this study investigated whether student loans are associated with self-reported health, psychological problems, and perceived life satisfaction. The results demonstrate that student loan debt was negatively associated with the life satisfaction and psychological well-being of respondents after controlling for other types of debt, such as medical and credit card debt, assets and income, and a number of other sociodemographic factors. Student loan debt from previous periods was also negatively associated with the health status of Hispanic respondents. The policy implications discussed in this study are relevant in the light of increasing higher education costs and debt burdens in America. The key findings from this study have policy implications for the long-term effects of student loans on life satisfaction, health, and well-being over time.

Suggested Citation

  • Jinhee Kim & Swarn Chatterjee, 2019. "Student Loans, Health, and Life Satisfaction of US Households: Evidence from a Panel Study," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 36-50, March.
    • Handle: RePEc:kap:jfamec:v:40:y:2019:i:1:d:10.1007_s10834-018-9594-3
    DOI: 10.1007/s10834-018-9594-3
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    5. Angela M. O’Rand & Jenifer Hamil-Luker, 2020. "Landfall After the Perfect Storm: Cohort Differences in the Relationship Between Debt and Risk of Heart Attack," Demography, Springer;Population Association of America (PAA), vol. 57(6), pages 2199-2220, December.
    6. Jason Jabbari & Mathieu Despard & Olga Kondratjeva & Brinda Gupta & Michal Grinstein-Weiss, 2023. "Nothing to show for it: Financial Distress and Re-Enrollment Aspirations for those with non-degreed debt," Research in Higher Education, Springer;Association for Institutional Research, vol. 64(1), pages 1-32, February.
    7. Mudrazija, Stipica & Butrica, Barbara A., 2023. "How does debt shape health outcomes for older Americans?," Social Science & Medicine, Elsevier, vol. 329(C).
    8. Jing Jian Xiao & Nilton Porto & Irene McIvor Mason, 2020. "Financial capability of student loan holders who are college students, graduates, or dropouts," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(4), pages 1383-1401, December.
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