How Has the Post-9/11 GI Bill Affected Veteran Students' College Loans? A Longitudinal Analysis of NPSAS Using Propensity Score Weighting

Using data from four waves of the National Postsecondary Student Aid Study (NPSAS) in 2004, 2008, 2012, and 2016, this study examines the effect of the PGIB on veterans' student loans. Results indicate that the PGIB has significantly affected veteran students' borrowing behavior, with an average $1,100 reduction in Stafford Loans. Veteran students attending for-profit institutions experience a larger loan decrease than their peers at public and private nonprofit institutions. In addition, loan reductions have occurred mainly at the extensive margin. The decrease in student loans is relatively small compared to the increase in veterans' education benefits under the PGIB, partly due to a rise in the cost of attendance after the implementation of the PGIB, driven by a higher proportion of veteran students attending for-profit institutions. Finally, loan reductions vary across veteran students.