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Abstracts prior to volume 5(1) have been archived!

Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106) 



JOURNAL OF APPLIED BUSINESS AND ECONOMICS


Can Student Borrowing Lead to Bankruptcy?


Author(s): Thomas C. O’Malley, Brian C. Payne

Citation: Thomas C. O’Malley, Brian C. Payne, (2021) "Can Student Borrowing Lead to Bankruptcy?," Journal of Applied Business and Economics, Vol. 23, Iss.1,  pp. 13-28

Article Type: Research paper

Publisher: North American Business Press

​Abstract:

This paper analyzes potential links between student loan debt and personal bankruptcy. It is nearly impossible to discharge education debt in bankruptcy. These loans have mandatory repayments that can manifest as financial distress for some borrowers. Distress may reach the point where some borrowers may seek bankruptcy protection for other, dischargeable debts. Results here suggest that student loan debt may supplement the existing credit card debt and adverse event explanations of bankruptcy. We present evidence from a nationally representative panel survey (NLSY79) that education debt is positively related to filing for bankruptcy among those with active student loans.

The views in this paper are solely the authors’ and do not reflect those of the US Government, Department of Defense, US Air Force, or US Air Force Academy.