College loans and scholarships and economic status of parents: An analysis based on the JHPS Second Generation Supplement

This paper descriptively analyzes the relationship between college loans and scholarships and the economic status of parents at the time of college attendance using the JHPS Second Generation Supplement (JHPS-G2). We focus on the parental household income, assets, and home ownership as their financi...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Authors Akabayashi, Hideo, Wang, Jie, Kobayashi, Masayuki, Sano, Shinpei, Tamura, Teruyuki, Naoi, Michio
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2021
Subjects
Enrollments
Family income
Home ownership
Student loans
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Summary:This paper descriptively analyzes the relationship between college loans and scholarships and the economic status of parents at the time of college attendance using the JHPS Second Generation Supplement (JHPS-G2). We focus on the parental household income, assets, and home ownership as their financial status. Even controlling for observable attributes, household income, asset holdings (net worth), and homeownership are correlated with college enrollment. Among college attendees, those from families with lower parental income, lower financial assets, and higher debt or without home ownership tend to have a higher probability of receiving college scholarships and loans. Although the analysis of this paper remains rather descriptive, the results suggest the need to consider not only parental household income but also their asset status as a determinant of college attendance and scholarship/loan decisions.