The Value of Student Debt Relief and the Role of Administrative Barriers: Evidence from the Teacher Loan Forgiveness Program

A-Tier
Journal: Journal of Labor Economics
Year: 2024
Volume: 42
Issue: S1
Pages: S261 - S292

Authors (3)

Brian A. Jacob (not in RePEc) Damon Jones (not in RePEc) Benjamin J. Keys (University of Pennsylvania)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We explore how much borrowers value student debt relief in the setting of the federal Teacher Loan Forgiveness program, which cancels between $5,000 and $17,500 in debt for teachers at high-need schools. Using both quasi-experimental evidence and a randomized controlled trial, we find that neither eligibility nor a targeted information intervention affects employment decisions. Information was found to increase application and receipt rates for teachers who had achieved eligibility. Evidence from contingent valuation surveys suggests that teachers do in general value debt relief. Incorporating qualitative evidence, we conclude that take-up may be constrained by program complexity and administrative barriers.

Technical Details

RePEc Handle
repec:ucp:jlabec:doi:10.1086/728468
Journal Field
Labor
Author Count
3
Added to Database
2026-01-25