Using the 1992-93 Baccalaureate and Beyond Longitudinal Study and 1997 follow-up, this study examined which factors influence the decision to borrow and the amount of borrowing for higher education. A double-hurdle model was applied to analyze both the decision to borrow and the borrowed amount equations. Current income and asset holdings had generally negative impacts on higher education debt, while expected future income increased amounts borrowed. Total costs had a positive effect on the probability and the level of borrowing. Total grants received had a negative influence on amount borrowed, but a positive influence on the participation decision. Key words: Borrowing for college costs, Credit, Double-hurdle model, College education financing, Higher education debt

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