IDEAS home Printed from https://ideas.repec.org/a/kap/jfamec/v40y2019i1d10.1007_s10834-018-9599-y.html
   My bibliography  Save this article

The Influence of Student Loan Debt on Financial Satisfaction

Author

Listed:
  • Cliff A. Robb

    () (University of Wisconsin-Madison)

  • Swarn Chatterjee

    () (University of Georgia)

  • Nilton Porto

    () (University of Rhode Island)

  • Brenda J. Cude

    () (University of Georgia)

Abstract

This research examined the influence of student loan debt on financial satisfaction using a sample of adults ages 18–54 from the 2015 National Financial Capability Study (NFCS). The study took advantage of the expanded set of variables related to student loan debt that was added to the 2015 wave of the NFCS survey. Results provided mixed evidence of student loan debt serving as an influential factor on consumer financial satisfaction. Whereas borrowing from multiple sources (federal and private) or private lenders only was associated with a lower likelihood of respondents indicating that they would make the same borrowing decisions, having student loan debt was not significantly associated with financial satisfaction. Implications for policy are considered.

Suggested Citation

  • Cliff A. Robb & Swarn Chatterjee & Nilton Porto & Brenda J. Cude, 2019. "The Influence of Student Loan Debt on Financial Satisfaction," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 51-73, March.
    • Handle: RePEc:kap:jfamec:v:40:y:2019:i:1:d:10.1007_s10834-018-9599-y
    DOI: 10.1007/s10834-018-9599-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10834-018-9599-y
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jing Xiao & Cheng Chen & Fuzhong Chen, 2014. "Consumer Financial Capability and Financial Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 415-432, August.
    2. Clinton Gudmunson & Sharon Danes, 2011. "Family Financial Socialization: Theory and Critical Review," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 644-667, December.
    3. Esperanza Vera-Toscano & Victoria Ateca-Amestoy & Rafael Serrano-Del-Rosal, 2006. "Building Financial Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 77(2), pages 211-243, June.
    4. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    5. van Praag, B. M. S. & Frijters, P. & Ferrer-i-Carbonell, A., 2003. "The anatomy of subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 51(1), pages 29-49, May.
    6. Velma Zahirovic-Herbert & Karen M. Gibler & Swarn Chatterjee, 2016. "Financial literacy, risky mortgages, and delinquency in the US during the financial crisis," International Journal of Housing Markets and Analysis, Emerald Group Publishing, vol. 9(2), pages 164-189, June.
    7. Calcagno, Riccardo & Monticone, Chiara, 2015. "Financial literacy and the demand for financial advice," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 363-380.
    8. Shui Ki Wan & Long Zhao, 2018. "Assessing the role of components of life satisfaction," Applied Economics, Taylor & Francis Journals, vol. 50(44), pages 4763-4773, September.
    9. Rothstein, Jesse & Rouse, Cecilia Elena, 2011. "Constrained after college: Student loans and early-career occupational choices," Journal of Public Economics, Elsevier, vol. 95(1), pages 149-163.
    10. Cliff A. Robb, 2017. "College Student Financial Stress: Are the Kids Alright?," Journal of Family and Economic Issues, Springer, vol. 38(4), pages 514-527, December.
    11. Meta Brown & John Grigsby & Wilbert van der Klaauw & Jaya Wen & Basit Zafar, 2016. "Financial Education and the Debt Behavior of the Young," Review of Financial Studies, Society for Financial Studies, vol. 29(9), pages 2490-2522.
    12. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    13. Jing Xiao & Chuanyi Tang & Soyeon Shim, 2009. "Acting for Happiness: Financial Behavior and Life Satisfaction of College Students," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 92(1), pages 53-68, May.
    14. Clark, Robert & Lusardi, Annamaria & Mitchell, Olivia S., 2017. "Financial knowledge and 401(k) investment performance: a case study," Journal of Pension Economics and Finance, Cambridge University Press, vol. 16(3), pages 324-347, July.
    15. M. Sirgy & Stephan Grzeskowiak & Don Rahtz, 2007. "Quality of College Life (QCL) of Students: Developing and Validating a Measure of Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 80(2), pages 343-360, January.
    16. Chang-ming Hsieh, 2004. "Income and Financial Satisfaction among Older Adults in the United States," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 66(3), pages 249-266, May.
    17. Sondra G. Beverly & Marianne A. Hilgert & Jeanne M. Hogarth, 2003. "Household financial management: the connection between knowledge and behavior," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jul, pages 309-322.
    18. Chiara Seghieri & Gustavo Desantis & Maria Tanturri, 2006. "The Richer, the Happier? An Empirical Investigation in Selected European Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 79(3), pages 455-476, December.
    19. William Disch & Lisa Harlow & James Campbell & Thomas Dougan, 2000. "Student Functioning, Concerns, and Socio-Personal Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 51(1), pages 41-74, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaomin Li & Melissa A. Curran & Ashley B. LeBaron & Joyce Serido & Soyeon Shim, 2020. "Romantic Attachment Orientations, Financial Behaviors, and Life Outcomes Among Young Adults: A Mediating Analysis of a College Cohort," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 658-671, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jing Xiao & Chuanyi Tang & Soyeon Shim, 2009. "Acting for Happiness: Financial Behavior and Life Satisfaction of College Students," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 92(1), pages 53-68, May.
    2. M. Joseph Sirgy, 2018. "The Psychology of Material Well-Being," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(2), pages 273-301, June.
    3. Jing Xiao & Cheng Chen & Fuzhong Chen, 2014. "Consumer Financial Capability and Financial Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 415-432, August.
    4. Gülay Günay & Ayfer Boylu & Özgün Bener, 2014. "An Examination of Factors Affecting Economic Status and Finances Satisfaction of Families: A Comparison of Metropolitan and Rural Areas," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(1), pages 211-245, October.
    5. Nurul Shahnaz Mahdzan & Rozaimah Zainudin & Mohd Edil Abd. Sukor & Fauzi Zainir & Wan Marhaini Wan Ahmad, 2019. "Determinants of Subjective Financial Well-Being Across Three Different Household Income Groups in Malaysia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 146(3), pages 699-726, December.
    6. Jae Min Lee & Jonghee Lee & Kyoung Tae Kim, 2020. "Consumer Financial Well-Being: Knowledge is Not Enough," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 218-228, June.
    7. Melissa A. Curran & Emily Parrott & Sun Young Ahn & Joyce Serido & Soyeon Shim, 2018. "Young Adults’ Life Outcomes and Well-Being: Perceived Financial Socialization from Parents, the Romantic Partner, and Young Adults’ Own Financial Behaviors," Journal of Family and Economic Issues, Springer, vol. 39(3), pages 445-456, September.
    8. Maria Cracolici & Francesca Giambona & Miranda Cuffaro, 2014. "Family Structure and Subjective Economic Well-Being: Some New Evidence," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 433-456, August.
    9. Lu Fan & Swarn Chatterjee, 2019. "Financial Socialization, Financial Education, and Student Loan Debt," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 74-85, March.
    10. Oscar A. Stolper & Andreas Walter, 2017. "Financial literacy, financial advice, and financial behavior," Journal of Business Economics, Springer, vol. 87(5), pages 581-643, July.
    11. Travis P. Mountain & Namhoon Kim & Joyce Serido & Soyeon Shim, 2021. "Does Type of Financial Learning Matter for Young Adults’ Objective Financial Knowledge and Financial Behaviors? A Longitudinal and Mediation Analysis," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 113-132, March.
    12. Brüggen, Elisabeth C. & Hogreve, Jens & Holmlund, Maria & Kabadayi, Sertan & Löfgren, Martin, 2017. "Financial well-being: A conceptualization and research agenda," Journal of Business Research, Elsevier, vol. 79(C), pages 228-237.
    13. Matthew Brzozowski & Brenda Spotton Visano, 2020. "“Havin’ Money’s Not Everything, Not Havin’ It Is”: The Importance of Financial Satisfaction for Life Satisfaction in Financially Stressed Households," Journal of Happiness Studies, Springer, vol. 21(2), pages 573-591, February.
    14. Michael Gutter & Zeynep Copur, 2011. "Financial Behaviors and Financial Well-Being of College Students: Evidence from a National Survey," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 699-714, December.
    15. Agus Zainul Arifin, 2018. "Influence Factors toward Financial Satisfaction with Financial Behavior as Intervening Variable on Jakarta Area Workforce," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 90-103.
    16. Chakraborty, Indraneel & Holter, Hans A. & Stepanchuk, Serhiy, 2015. "Marriage stability, taxation and aggregate labor supply in the U.S. vs. Europe," Journal of Monetary Economics, Elsevier, vol. 72(C), pages 1-20.
    17. Peng, Fei & Kang, Lili & Jiang, Jun, 2011. "Selection and institutional shareholder activism in Chinese acquisitions," MPRA Paper 38701, University Library of Munich, Germany.
    18. Hans A. Holter & Dirk Krueger & Serhiy Stepanchuk, 2019. "How do tax progressivity and household heterogeneity affect Laffer curves?," Quantitative Economics, Econometric Society, vol. 10(4), pages 1317-1356, November.
    19. Chen, Yuanyuan & Feng, Shuaizhang & Han, Yujie, 2020. "The effect of primary school type on the high school opportunities of migrant children in China," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 325-338.
    20. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2014. "Innovation and Productivity in Services: Evidence from Germany, Ireland and the United Kingdom," JRC Working Papers on Corporate R&D and Innovation 2014-04, Joint Research Centre (Seville site).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jfamec:v:40:y:2019:i:1:d:10.1007_s10834-018-9599-y. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.