Factors associated with the borrowing behavior of young adults who are transitioning from financial dependence to financial independence were identified. Data used were from the 2009 Transition to Adulthood and its parental companion data set, Panel Studies of Income Dynamics. Results indicate that age, gender, race, and work status are associated with the debt burden of young adults. Conversely, closeness to mother and communication, parental resources, and human capital attainment are negatively associated with borrowing behavior. Financial independence was positively associated with both credit card borrowing and student loan debt of college students.

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