An Examination of Student Loan Debt, Financial Threats, and Financial Worry.
- Resource Type
- Article
- Authors
- Gallardo, Juan E.; MacDonald, Maurice; Lim, HaNah; Kiss, Elizabeth
- Source
- Journal of Personal Finance. 2024, Vol. 23 Issue 1, p47-61. 15p.
- Subject
- *STUDENT loan debt
*FINANCIAL stress
*STUDENT loans
WORRY
STRESS management
- Language
- ISSN
- 1540-6717
This study analyzed the relationship between student loans and financial worry using stress and coping theory. Analyses found a direct positive relationship of student loan debt delinquency and non-delinquency with objective and subjective financial threats. The magnitude of the student loan delinquency effect was greater than that of non-delinquency. Both subjective and objective financial threats were positively associated with financial worry, but having a student loan was not a significant predictor of financial worry when threats were accounted for. Instead, financial threats entirely mediate student loan influences on financial worry. Student loan delinquency had a larger indirect effect via objective financial threats on worry than the direct effects of coping resource variables and important demographic factors. Results here provide support for recent interest from policymakers and financial professionals about the non-asset effects of student loans by highlighting the distinction between delinquent and non-delinquent student loans. [ABSTRACT FROM AUTHOR]