The Price of Opportunity: Race,Student Loan Debt,and College Achievement

This paper examines racial differences in student loan debt and concurrently assesses the potential payoffs and countervailing risks inherent in reliance on loans in a cohort of black and white first‐year college students. Using the 1996–2001 Beginning Postsecondary Student study we find that the use of loans results in greater enrollment persistence and higher odds of college completion, especially for black students. However, black students acquire larger amounts of student loan debt and face a higher risk of default than white students. This is in part due to associated racial differences in family socioeconomic status and type of institution attended. We suggest these findings illuminate the dual‐sided nature of college loans that makes them an imperfect, but overall positive, tool for reducing educational inequality. On the one hand, student loans reduce educational inequality that otherwise results from disadvantaged students' struggles to pay for college and complete college in a timely fashion. At the same time, the degree to which loans reduce racial inequality is diminished by black students' higher loan amounts, the large number of black students who borrow but do not finish college, and the large racial difference in the odds of defaulting on a loan.     

Does Financial Satisfaction Vary Depending on the Funding Strategy Used to Pay for College?

This study sought to determine whether the levels of financial satisfaction reported by college undergraduates and graduates differ in relation to whether they funded their college education by working or borrowing or a combination of the two. Data for this study came from a survey sample of full-time freshmen that formed the basis of a longitudinal study conducted at a large public university. Funding sources examined were grouped into those who worked only, those who borrowed only, those who worked and borrowed, and those who used grants, scholarships, or other sources of money to fund their college education. Compared to those who had student loans, those who had financed college with grants, scholarships, or other money (usually from family and/or friends) were more likely to report greater financial satisfaction than those who had used student loans to pay for college. There was evidence that this was only true during college rather than after college. The results obtained suggest that merely possessing a student loan may not necessarily decrease the level of financial satisfaction as many suspect, especially considering other funding alternatives such as working during college. While there was no significant impact of these funding strategies on financial satisfaction either during or after college, there was evidence for possible thresholds at which overall student loan balances may begin to erode financial satisfaction. The results obtained suggest that student loans may not decrease the level of financial satisfaction as much as many have suspected when compared with working to pay for college, as long as the amount of the student loan is not excessive, and is not accompanied by other types of debt (which also reduced financial satisfaction).

     

The Impact of Student Loan Debt and Student Loan Delinquency on Total,Sex‐, and Age‐specific Suicide Rates during the Great Recession

In 2012, the outstanding student loan balance in the United States surpassed $1 trillion, and between 2005 and 2012, the student loan delinquency rate increased by 77 percent. Simultaneously, by the end of the 2005–2012 time period, the total suicide rate in the United States reached the highest levels in more than a decade. To investigate the recent trends in student loans and suicide, this paper examined the association between state‐level student loan debt, student loan delinquency, and total, age‐, and sex‐specific suicide rates. The study used a hybrid (decompositional) longitudinal regression approach to examine the relationship between student loan debt, delinquency, and suicide rates during the 2005–2012 time period. The results showed student loan delinquency had a positive and significant effect on several of the suicide rates examined within states but had no effect on suicide rates between states net of controls. The results also showed student loan debt had a significant and negative association with suicide for people ages 20–24 and 25–34.     

Student debt and hardship: Evidence from a large sample of low- and moderate-income households

Student debt has risen in recent years as higher education costs have shifted to students and their families, particularly those with low-to-moderate incomes (LMI). Though a college degree continues to convey higher earnings, those who finance their degrees have lower net worth and greater financial difficulties than persons without student debt. We assess the relationship between student debt and material and health care hardship among a large sample (n = 5558) of LMI tax filers, using propensity score analysis to adjust for self-selection into student debt status and loan amount and monthly payment quartiles. We find that participants with student debt have a higher likelihood of hardship. Loan amounts only partially predict hardship, and borrowers making current loan payments are at lower odds for hardship than non-payers. We also find that among those with student debt, non-payers and those without college degrees have much greater social and economic disadvantages.     

Financial literacy education: An opportunity for colleges and sociology

Financial literacy represents the knowledge necessary to manage one's financial affairs in a way that contributes to overall wellbeing, yet financial literacy and financial education are understudied in sociology. While emerging adults have low rates of financial literacy overall, this article focuses on college students due to increasing college access and student loan debt. Based on the limited literature that assesses college financial literacy education, it appears that these types of programs may serve to advance college students' financial knowledge. Additional mechanisms that serve to develop college students' financial literacy include parent socialization, banking experience, and high school financial education programs. However, not everyone has the same access to these resources. Thus, given the magnitude of the US student debt crisis and persistent economic inequalities, college financial literacy education may prove beneficial for all students, particularly those from economically vulnerable backgrounds. This article serves as an invitation to sociologists to consider financial literacy education as both a worthwhile pursuit in application and as a research topic.     

Racial disparities in education debt burden among low- and moderate-income households

Evidence now demonstrates significant variation in education-debt levels by race and household income, with Black and lower-income students accumulating higher levels of education debt compared to their White and upper-income peers. This study is one of the first to evaluate whether racial disparities in education debt extend to a low- and moderate-income (LMI) population. With data from a national sample of LMI households in the Refund to Savings study (N = 17.684), we employ a two-part modeling approach with a matching-estimator robustness check to estimate racial and ethnic variation in education debt. We find that significant disparities in education debt remain: the odds of student loan indebtedness are twice as high for LMI Black students as for White counterparts. In all, LMI Black students are estimated to incur $7721 more in education debt than LMI Whites, with disparities persisting after graduation. These findings suggest that LMI Black and White students, who face similar liquidity constraints and borrowing risks, are at unequal risk of accumulating education debt. We conclude by discussing the implications of this research for asset-building policies and student loan repayment efforts, both of which offer promise in bolstering college affordability and easing the burden of education debt.     

Government Student Loan Default: Differences between Graduates of the Liberal Arts and Applied Fields in Canadian Colleges and Universities

Les programmes de prêts étudiants du gouvernement sont de plus en plus disponibles pour permettre aux étudiants de familles défavorisées un meilleur accès à l'éducation. En revanche, il est inquiétant d'observer des niveaux d'endettement élevés chez les étudiants et les difficultés qu'ont certains à rembourser ces dettes. Dans cette étude, des données de l'Enquête Nationale auprès des Diplômes 2005 (END) de Statistiques Canada sont analysées dans le but d'établir des liens entre les domaines d'étude et le non‐remboursement des dettes sur les prêts étudiants du gouvernement pour un échantillon de diplômés des collèges et universités. Les analyses prennent en compte les effets de facteurs alternatifs liés au statu socio‐économique et aux revenus. Les résultats démontrent que le niveau d'éducation (collégial versus universitaire) et les domaines d'étude sont des déterminants importants du risque de non‐remboursement des dettes sur les prêts étudiants deux ans après l'obtention du diplôme. De plus, ces résultats sont stables en tenant compte des différences de revenus. Government student loan programs have become increasingly available to provide opportunities and upward mobility for students of disadvantaged backgrounds. Rising student debt and its impact on the repayment experiences of recent postsecondary graduates has become an important concern. This study employs data from Statistics Canada's 2005 National Graduates Survey to examine the relationship between field of study and loan default on government‐supported student loans for graduates of community college and baccalaureate‐level university programs when controlling for many factors relating to sociodemographic characteristics and earnings. Overall, both level of schooling (college versus university) and field of study are significant predictors of whether graduates report defaulting on their government student loans within two years of graduation. However, these findings are relatively unrelated to earnings.     

THE PROCYCLICAL LEVERAGE EFFECT OF COLLATERAL VALUE ON BANK LOANS—EVIDENCE FROM THE TRANSACTION DATA OF TAIWAN

We investigated the empirical relationship between firms' collateral values and land-secured loans over asset price cycles. A simultaneous equation model of loan demand and supply was estimated using a transaction-level data set from Taiwan. The data set contains collateral information and identifies lenders and borrowers. We found that the value of collateralizable assets has positive and significant effects on loan amounts and that the leverage effect of collateral is procyclical to asset price cycles. Firms in the electronics industry, the star industry in the sample period, are found to borrow more than other firms do at each marginal dollar of collateral . ( JEL C50, E30, G20)     

LIFE AFTER DEBT: POSTGRADUATION CONSEQUENCES OF FEDERAL STUDENT LOANS

We estimate the causal effect of student loans on postgraduation labor market outcomes exploiting a kink in the formula determining eligibility for need‐based student loans. Using a representative sample of students graduating with a bachelor's degree in 1993, we find that student debt has nonnegative effects on earnings. This result holds with differing levels of statistical significance across a battery of different empirical designs: (1) ordinary least squares, (2) partially linear, and (3) regression kink. We find similar results for the 2008 graduating cohort. (JEL I22, I26, J32, J33)     

Accumulating assets,debts in young adulthood: Children as potential future investors

Child Development Accounts (CDA) aim to open savings accounts in childhood as a way to lay a foundation for building assets in young adulthood and beyond. Mainstream banks may be key partners in opening the accounts in which children can build assets. While children may have limited savings to invest initially, they may increasingly invest over time by accumulating assets and debts through mainstream banks. Mainstream banks may benefit from children's increasing investments. This paper uses propensity score weighted, longitudinal data from the Panel Study of Income Dynamics and its supplements to examine savings, assets, debt, and net worth accumulation of young adults and whether or not they accumulate more when they have savings accounts as children. Young adults accumulate a median of $1000 in savings accounts, $4600 in total assets, $965 in debt (excluding student loans), and $4000 in net worth (excluding student loans). Young adults accumulate more savings and total assets when they have savings accounts as children. They accumulate less debt and more net worth when their households accumulate high net worth.     

The impact of family assets and debt on college graduation

This study examines the influence of family financial assets and debt, both measured during the time of youth's college enrollment, on the chances of college graduation. Data come from the National Longitudinal Survey of Youth. Results from analyses controlling for a number of student, parental, and institutional characteristics indicate that family assets are positively related to the chances of college graduation among White and Black students; family debt is negatively associated with the odds of college graduation among Black students, but neither family assets nor family debt is related to the chances of college graduation among Hispanic students. Overall, results indicate that family assets and debt explain a small portion of racial/ethnic gaps in college graduation. Policy implications are considered.     

河北省生源地助学贷款需求、供给与还款分析——以河北农业大学为例

：生源地助学贷款具有承贷主体多元化、放款形式多样化、贷款管理属地化等优势，作为国家助学贷款的有益补充具有广阔的发展前景。根据对河北农业大学生源地助学贷款在校生和毕业生的问卷调查和数据分析，在需求和供给方面存在着供给量不足、供给形式单一等问题；在还款方面，存在着还款期限短、违约率较高等问题。针对上述问题，应通过加大政策扶持力度、建立风险基金和信用体系等措施来解决，以促进河北省生源地助学贷款的健康发展。     

Education loans and wealth building among young adults

With the use of education loans growing rapidly as a way to finance college education, it is important to examine how such loans impact the future financial well-being. This study examines the association between education loans and postcollege wealth accumulation among young adults, the group with the greatest share of outstanding education loans. Data come from 15 rounds of data of the 1997 National Longitudinal Survey of Youth, and the analyses control for a number of student characteristics, college experiences, and parental income. Results from a treatment-effects model indicate that having education loans upon leaving college is negatively related to postcollege net worth, financial assets, nonfinancial assets, and value of primary housing. Furthermore, having education loans also has an additional negative link to the value of net worth among Black young adults. The relationship between the amount of education loans and wealth accumulation is not statistically significant among those with outstanding loans. The study findings indicate the importance of developing alternative approaches, instead of additional loans and other credits, to meet the financial needs of college students.     

“They will go like I did”: How parents think about college for their young children in the context of rising costs

Rising college costs and student loan burdens have triggered national debates about whether a college degree is “worth it.” Parents raising children in the midst of these debates may be evaluating the value of a college degree relative to its costs and adjusting their educational expectations for their children, shaping future generations' socialization toward college. In this context, it is unclear how theoretical models on college attendance decision-making perform in explaining parents' thoughts about college for their children. This qualitative study elicited early perspectives on college through in-depth interviews with 37 parents of kindergarten children from one school district in a mid-sized, Midwestern city. Almost unanimously, lower-income parents with some college education saw a college degree as a catalyst of their children's upward mobility, though very few thought they could help their children afford college. Higher-income parents more often expressed doubts about pursuing a college degree or the value of that degree acquired with debt.     

HPV knowledge and behaviors of black college students at a historically black university

College students are at high risk for human papillomavirus (HPV) infection, yet their knowledge and self-protective behaviors appear inadequate. Researchers who have measured HPV-related knowledge and behaviors in evaluating college intervention efforts pay secondary attention to black college students because this group generally represents only a small subset of samples of the broader college population. OBJECTIVE AND PARTICIPANTS: The authors' purpose in this study was to examine HPV-related knowledge and behaviors in 351 black undergraduates attending a historically black southeastern university in the spring of 2003. METHODS: Voluntary and anonymous student participation was solicited in randomly selected undergraduate classes. RESULTS: Results indicated that most students lacked HPV awareness (64%), became aware of HPV largely after infection, and gained their HPV knowledge from a health-care provider or college class. The authors performed an analysis by gender and found that women were more knowledgeable about HPV than were men. Observed HPV-related knowledge and behaviors were similar to samples of the broader US college population. CONCLUSIONS: Findings suggest a greater need for HPV intervention efforts for all college students, including those at black colleges.     

Parental Borrowing for Dependent Children’s Higher Education

Using the 1992–1993 Baccalaureate and Beyond Longitudinal Study, with the 1997 follow-up, the parental decision to borrow and, for borrowers, the level of borrowing for dependent children’s college education was analyzed. Parents with smaller household size and those being college graduates borrowed greater amounts. White parents borrowed greater amounts than their non-White counterparts. The age of the student, dependent students’ income and parents’ cash and savings each had a significant negative impact on the amount parents borrowed, while home equity was a significant positive factor. Greater college costs significantly increased parents’ decision to borrow, as well as the borrowed amount. Greater amounts of grants significantly reduced the amount borrowed.     

“Yes,I Can”: Testing an Intervention to Increase Middle School Students’ College and Career Self‐Efficacy

Middle school is the appropriate time for students to begin exploring careers and improving self‐efficacy; however, empirically supported career and college readiness interventions for U.S. middle school students are limited. Examining the effect of an intervention that combined a virtual experience and a local college visit on middle school students (99 girls, 74 boys), the authors found that participating students had higher levels of college and career self‐efficacy than did nonparticipating students. The study shows that a workshop of the online Florida CHOICES program coupled with a campus visit increased middle school student career and college self‐efficacy. Future research should include longitudinal studies and use of diverse populations to improve generalizability of study results.     

HPV Knowledge and Behaviors of Black College Students at a Historically Black University

College students are at high risk for human papillomavirus (HPV) infection, yet their knowledge and self-protective behaviors appear inadequate. Researchers who have measured HPV-related knowledge and behaviors in evaluating college intervention efforts pay secondary attention to black college students because this group generally represents only a small subset of samples of the broader college population. Objective and Participants The authors' purpose in this study was to examine HPV-related knowledge and behaviors in 351 black undergraduates attending a historically black southeastern university in the spring of 2003. Methods Voluntary and anonymous student participation was solicited in randomly selected undergraduate classes. Results Results indicated that most students lacked HPV awareness (64%), became aware of HPV largely after infection, and gained their HPV knowledge from a health-care provider or college class. The authors performed an analysis by gender and found that women were more knowledgeable about HPV than were men. Observed HPV-related knowledge and behaviors were similar to samples of the broader US college population. Conclusions Findings suggest a greater need for HPV intervention efforts for all college students, including those at black colleges.     

College smoking policies and smoking cessation programs: results of a survey of college health center directors

College students' cigarette smoking rose dramatically during the 1990s. Little is known about what colleges do to address the problem. Health center directors at 393 4-year US colleges provided information (response rate: 65.1%) about college policies addressing smoking and the availability of smoking cessations programs. Of the health center directors surveyed, 85% considered students' smoking a problem; yet only 81% of colleges prohibit smoking in all public areas and only 27% ban smoking in all indoor areas, including students' rooms in dormitories and in private offices. More than 40% of the respondents reported that their schools did not offer smoking cessation programs and that the demand for existing program was low. Colleges need to do more to discourage student tobacco use. Recommended actions include campus-wide no-smoking policies that apply to student residences and identification of new ways of providing smoking prevention and cessation services.     

Managing the Student‐Parent Dilemma: Mothers and Fathers in Higher Education

In this article, I explore how student‐parents draw on cultural discourses associated with parenthood and education when talking about their child care choices and schooling experiences. Unlike many other studies, I include the voices of both fathers and mothers. College students have extraordinary demands on their time, and their instructors do not generally expect them to be parents. Some students feel that in fact they are expected to be bad parents, bad students, or both. The use of accounts allows student‐parents to assert they are good parents even as they spend less time with their children and make their schoolwork a priority some of the time. As they modify their understandings of their capabilities as parents and students in this setting, they come to see themselves differently. They potentially change others' understandings of what good parents and good students are as well. Both the parent identity and the student identity change in the context of the university.