2026-09-21T14:43:10Z https://www.ideals.illinois.edu/oai-pmh

oai:www.ideals.illinois.edu:2142/105055 2023-07-11 col_2142_5131 col_2142_8800 com_2142_5130 com_2142_5132

Bragg, Debra D. Bragg, Debra D. Zamani-Gallaher, Eboni M. Trent, William T. Pak, Yoon Soler Salazar, Maria Claudia 2019-08-23T20:36:02Z 2019-08-23T20:36:02Z 2021-08-24T09:15:24Z 2019-04-19 2019-05 Income Share Agreements (ISAs), often presented as “loan alternatives”, have the potential to address the student loan crisis and to provide protections to students’ income downside risks. Despite interest in implementing ISAs at the federal level and the growing number of ISA programs being offered, little is known about the role of ISAs in education or about moral hazard and adverse selection in ISAs. I use administrative data from an ISA provider in Colombia and Peru called Lumni, and I combine it with a survey of ISA Takers and ISA Non-Takers to shed light on the role that ISAs play in college persistence and on the factors that explain student selection into ISAs. The results of the survey indicate that 37% of the Takers took up ISAs because they did not have financial alternatives. If ISAs had not been available, 25% of these students would have not persisted, 12% would have studied at a cheaper institution, and nearly 1% would have studied a different major. Individuals who perceive that loans are riskier than ISAs, who are 25-29 years old, single, poor, and financially dependent on their parents are more likely to take-up ISAs. ISA Takers are more confident about their future salaries, but tend to have lower academic performance, consistent with the presence of adverse selection. Takers also value that ISA payments are tied to income, a feature of the contract that insures students against income risk, possibly enhancing their ability of freely choosing majors and institutions. Non-Takers perceive that ISAs are riskier than loans and dislike the conditions of the ISA contract. The results of this study inform design and policy evaluation of ISAs both in the US, where legislation has been introduced and ISA programs are proliferating, and in other countries considering new financing reforms in higher education. Submission published under a 24 month embargo labeled 'U of I Access', the embargo will last until 2021-05-01 The student, Maria Soler Salazar, accepted the attached license on 2019-04-18 at 00:36. The student, Maria Soler Salazar, submitted this Dissertation for approval on 2019-04-18 at 00:42. This Dissertation was approved for publication on 2019-04-19 at 10:53. DSpace SAF Submission Ingestion Package generated from Vireo submission #13732 on 2019-08-22 at 15:07:22 Made available in DSpace on 2019-08-23T20:36:02Z (GMT). No. of bitstreams: 4 SOLERSALAZAR-DISSERTATION-2019.pdf: 1689292 bytes, checksum: ba554be74e5142334daddb9611272ff7 (MD5) SOLER-SALAZAR-MARIA-CLAUDIA-DISSERTATION-2019-04-19-19.docx: 1084774 bytes, checksum: fa61a5b47aa8373edc6758327b941ac9 (MD5) LICENSE.txt: 4216 bytes, checksum: 000035de9f11c5f9058cbed90f677ac0 (MD5) PROQUEST_LICENSE.txt: 4562 bytes, checksum: b20dfb37950825bb7d85ccc4b05b6743 (MD5) Previous issue date: 2019-04-19 Embargo set by: Seth Robbins for item 112174 Lift date: 2021-08-23T20:36:18Z Reason: Author requested U of Illinois access only (OA after 2yrs) in Vireo ETD system U of I Only Restriction Lifted for Item 112174 on 2021-08-24T09:15:24Z. application/pdf http://hdl.handle.net/2142/105055 en Copyright 2019 Maria Claudia Soler Salazar Income Share Agreements higher education financing student loan debt persistence college outcome risk attitudes adverse selection credit constraints. International evidence and implications of student take-up of income share agreements on U.S. higher education text text Educ Policy, Orgzn & Leadrshp Educ Policy, Orgzn & Leadrshp University of Illinois at Urbana-Champaign Dissertation Ph.D.