That it desk records earliest-phase estimates of one’s effect of university fees to the federal student education loans paid at the private height

The parameter ?₂ captures any partial correlation between tuition rates and homeownership among the control group, absorbing any state-level shocks that affect both tuition and the homeownership rate. Note that in specifications with state-by-year fixed effects ?₂ is not identified, as the average tuition rate is collinear with the fixed effects. The parameter ?₃ captures the average difference in homeownership rates between the treatment and control groups. We are left identifying ?_{step one}, the effect of student loan debt on homeownership, by the widening or shrinking of the gap in homeownership rates between public 4-year school attendees and the general population as tuition rates change, analogous to a difference-in-differences estimator.