Do Parents Matter for Student Loan Repayment after Graduation?

Previous studies suggest that a college degree is the great equalizer leveling playing field. However, rapidly growing educational debt of graduates might restrict their life chances throughout adulthood, particularly for those raised in socioeconomically disadvantaged families. This study uses data from National Survey College Graduates to examine whether parents’ socioeconomic status related children’s student loan repayment after graduation. Holding amount borrowed completing higher education constant, with less educated parents hold larger adulthood compared counterparts more parents. The association between family background and remains significant addition controls various covariates graduates’ education, occupation, income, other labor market outcomes. suggests burdens imposed on individual limit meritocratic power education.