Personality Traits and Student Loan Holding for Self and for Children Among Baby Boomers

Abstract

This study investigates the relationship between baby boomers’ personality traits and their student loan indebtedness in the United States. This article utilizes the 2014 data set from the 1979 cohort of the U.S. National Longitudinal Survey of Youth, applies survey weights, estimates multiple probit models, and computes marginal effects. The results reveal that those with greater openness are more likely to have student loans for themselves, while those with greater neuroticism are less likely to have student loans for themselves and for their children. Additional analyses based on core/trailing boomer status, gender, and income subsamples show the differing roles of each personality trait on student loan indebtedness. The findings build upon the literature by providing evidence that personality is significantly associated with student loan indebtedness and that this relationship is robust to translate into student debt management behavior.