Choosing a college is one of the biggest financial decisions a young adult will make. It’s no secret that college is expensive, and that lower-income students often require more assistance to manage those high costs. What’s less well known is how access to credit—or the lack thereof—can enhance or reduce inequality.

Alexander Monge-Naranjo is a vice president at the Federal Reserve Bank of Atlanta. His work has examined college choice, financing, and repayment decisions. He joins host Steven Durlauf to discuss his research on education financing in the United States, place-based disadvantages in Latin America, and their impact on mobility.