"This paper examines the influence of educational debt aversion on the career choice of law school students, including the decision to attend law school and the decision to work in public interest law. To isolate the role of debt aversion, I analyze experimental data from NYU Law School's Innovative Financial Aid Study in which two career-contingent financial aid packages were randomly assigned to participating admits. Because the packages had equivalent monetary value and differed only in the duration of indebtedness, differences in career choices associated with financial aid assignment can be attributed to psychological debt aversion. The results indicate that debt aversion matters: In classes for which the lottery was announced prior to enrollment, participants randomly assigned to the low-debt package are nearly twice as likely to enroll. In classes without selective matriculation, lottery winners have a 36-45% higher rate of first job placement in public interest law. Both results are consistent with a simple model of debt aversion in which psychic costs of holding debt during and after school generate differences in the discounted lifetime utility of the financial aid packages and, hence, in the value of attending law school and of working in public interest law"--National Bureau of Economic Research web site.

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The papers included in this volume represent the most current research and knowledge available about student loans and repayment. It serves as a valuable reference for researchers and policymakers who seek a deeper understanding of how, why, and which students borrow for their postsecondary education; how this borrowing may affect later decisions; and what measures can help borrowers repay their loans successfully.

In Educating Public Interest Professionals and the Student Loan Debt Crisis, Robert Leslie Fisher examines the student loan debt crisis and its effects on America’s citizens and economies. Exploring the shortage of professionals in fields such as education, medicine, and law, Fisher analyzes the causes and effects of the student loan debt crisis in America and argues for higher wages, student loan debt forgiveness, and an updated financial model to pay for training for public interest professionals. Supported by economic research and a sociological background, Fisher proposes a path forward that will ease the student loan debt crisis and revitalize the economy.

Handbook of the Economics of Education, Volume Seven describes the research frontier in key topical areas and sets the agenda for further work. Sections in this new release include Methods for Measuring School Effectiveness, Teacher Evaluation and Training, U.S. School Finance: Resources and Outcomes, College Costs, Financial Aid, and Student Decisions, Firm Training, Multidimensional Human Capital and the Wage Structure, and more. By bringing together some of the world's leading scholars, this volume provides a unique view of scholarship in the area. The international perspectives of the editors – Hanushek at Stanford, Machin at LSE, and Woessmann at Munich – leads to a volume with something for all researchers. Topics range from the economics of early childhood education to inequality in society to cash transfers in developing countries. - Identifies and evaluates the state-of-the-art - Includes clear descriptions of the meaning of existing research and the most likely avenues for the future - Provides insights into how policy interventions in education can help or hurt human capital outcomes