The authors document that the costs of student debt extend beyond borrowers to their parents. Exploiting the student loan federal payment moratorium, which paused payments for a subset of borrowers, the authors estimate the effect of children's debt relief on parental finances. Parents of treated borrowers experience a 5.7% reduction in installment delinquencies, a 6.4% decline in bankruptcy, and increased mortgage, installment, and home equity borrowing.
