Embedded Files
Post date: Jun 21, 2013 10:58:42 PM
My classmate Seth Neumuller (now an AP) and I are exploring the implications of student loan deferment programs. The government essentially bears the interest costs of deferment on federal student loans for up to 3 years, conditional on unemployment. The implicit marginal tax rate on working is then the cost of resuming interest payments. For many young households, this is a significant fraction of earnings (nearly 10%).
Key Question: Has student debt overhang and the subsequent policy response affected the labor supply of young adults?
Google Sites
Report abuse