This paper examines how college educational debt affects various post-baccalaureate decisions of bachelor's degree recipients. I employ the Baccalaureate and Beyond 93/97 survey data. Using college-aid policies as instrumental variables to correct for the endogeneity of student college debt level, I find that for public college graduates, college…

States differ substantially in higher education policies. Little is known about the effects of state policies on the performance of public colleges and universities, largely because no clear measures of college quality exist. In this paper, I estimate the average quality of public colleges of US states based on the value-added to individuals'…