PT  - JOURNAL ARTICLE
AU  - Hotz, V. J.
AU  - Wiemers, Emily
AU  - Rasmussen, Joshua
AU  - Maxwell Koegel, Kate
TI  - The Role of Parental Wealth and Income in Financing Children's College Attendance and Its Consequences
AID  - 10.3368/jhr.1018-9828R2
DP  - 2021 Sep 09
TA  - Journal of Human Resources
PG  - 1018-9828R2
4099  - http://jhr.uwpress.org/content/early/2021/08/31/jhr.1018-9828R2.short
4100  - http://jhr.uwpress.org/content/early/2021/08/31/jhr.1018-9828R2.full
AB  - This paper examines the influence of parental wealth and income on children’s college attendance and parents’ financing decisions and on whether children graduate from college. We also examine whether parental financing affects the subsequent indebtedness of parents and children. We find that higher levels of parents’ wealth and income increase the likelihood that children attend college with financial support relative to not attending college, and that parental wealth increases the likelihood that children graduate from college. We show descriptive evidence that parents’ financing of their children’s college attendance increases parents’ subsequent indebtedness but does not reduce their children’s indebtedness, including their student loan debt.