2024/04/25 by Rachel Danahy, Cäzilia Loibl, Catherine P. Montalto +2 · 11 citations
Business, Management and Accounting · Psychology · Social Sciences · #Actuarial science #Business #Debt #Economics #Finance #Financial Literacy, Pension, Retirement Analysis #Financial literacy #Health disparities and outcomes #Loan #Probit model #Psychological Well-being and Life Satisfaction #Psychology #Social psychology #Socialization #Student loan
paper · pdf · doi:10.1111/joca.12581
published in Journal of Consumer Affairs 58(2), 692-709 (Wiley)
crossref issued 2024/04/25 · crossref published 2024/04/25 · crossref published-online 2024/04/25 · openalex publication_date 2024/04/25 · crossref created 2024/04/25 · crossref published-print 2024/06/01 · crossref deposited 2024/06/11 · openalex created_date 2025/10/10 · crossref indexed 2026/08/03 · openalex updated_date 2026/08/04
Abstract We provide updated results about the link between student loan debt and emergency savings with financial stress, and after conditioning for differences in social and personal resources. We use the stress process model framework and data from the 2020 Study on Collegiate Financial Wellness ( N = 25,310) to estimate ordered probit regression models. The 2020 data confirm that students report higher levels of stress if they hold more loan debt and have lower emergency savings. Students with higher levels of financial socialization and financial self‐efficacy experience less financial stress and experience more stress when they report both positive and negative financial management behaviors. Among student‐borrowers, the role of social and personal resources is weakened. The data confirm ongoing financial stress among college students and points to the important role of financial socialization through parents and financial skill in students' ability to cope with financial stress.