Does Student Loan Debt Structure Young People’s Housing Tenure? Evidence from England

Abstract

This article analyses the interaction between two policy areas affecting young people in England – housing and student funding. It is the first of its kind exploring a range of dynamics in the relationship between housing and student loan debt. Young people today are far less likely to own their home and are more likely to live with their parents than earlier generations. In parallel, higher education tuition fee increases have led to a growing share of students taking out loans and graduating with higher debt, which they will be repaying for most of their working lives. This research examines the relationship between student loans – having borrowed for higher education and attitudes towards debt – and housing tenure at age 25, using the Next Steps dataset. We find that young graduates who did not borrow for higher education are more likely to own their home and less likely to rent or live with their parents than graduates who borrowed for their studies or young people who never attended higher education. These results suggest that higher education funding policies and student loan debt play important roles in structuring young people’s housing in England.

Does young adulthood caring influence educational attainment and employment in the UK and Germany?

“…Whereas tuition fees in Germany were abolished in 2014, students in the UK have to pay up to about £9,000 per year, leading to the overwhelming majority of students in the UK taking a student loan. The subsequent loan debts, even though their repayments are incomecontingent, may inhibit future economic resources and can be linked to reducing the likelihood of early homeownership after graduation (Gayardon et al, 2022). It is noteworthy that, in the German analysis, there was an interaction with gender, where women who would typically be more likely to achieve higher education now have an even lower probability of obtaining a university degree because of their caring responsibilities, compared to male carers.…”

The impact of bank loans on university student retention

“…In some cases, loans have been associated with distracting effects such as stress, personal dissatisfaction, and mental health issues in students as well as among university graduates (Britt et al. , 2017; De Gayardón et al. , 2022; Ferguson, 2022; Harding, 2011; Nieuwoudt and Pedler, 2023).…”

“…Indebtedness affects their professional and work development (Amin et al. , 2021; Gecowets, 2017) and their socioeconomic situation once graduated (De Gayardón et al. , 2022).…”

Exploring the impact of a conspicuous identity on college students’ campus loans: Evidence from China

“…Some studies have stated that household disposable income, monthly consumption (Han et al, 2015), grade, gender, 10.3389/fpsyg.2022.967568 student's place of origin (Pang and Cheng, 2017;Wang and Zhou, 2017), qualifications, major (Zhou et al, 2019),parents' education level, ethnicity, debt aversion level (De Gayardon et al, 2022), and levels of financial literacy (Artavanis and Karra, 2020) are important in influencing not only credit card debt but also student and campus loans. In this study, multiple sociodemographic characteristics (Xi) are included in the model.…”