Parental Support, Savings, and Student Loan Repayment

Using unique survey and administrative data from Canada, we document that parental support personal savings substantially reduce student loan repayment problems. Developing a model of borrowing repayment, show nonmonetary costs applying for income-based assistance are critical to understanding our findings. Furthermore, eliminating these may be inefficient. Empirically, expanding Canada’s Repayment Assistance Plan automatically cover all borrowers could program revenue by half over early years. Finally, how programs can more efficiently designed. (JEL G51, I22, I23, I28)