Advertisement

Research in Higher Education

, Volume 45, Issue 7, pp 701–737 | Cite as

Educational Debt Burden Among Student Borrowers: An Analysis of the Baccalaureate & Beyond Panel, 1997 Follow-Up

  • Derek V. Price
Article

Abstract

Using the National Center for Education Statistics' Baccalaureate & Beyond Longitudinal Survey, a nationally representative sample of 1992–1993 college graduates, this paper examines the relationship between educational debt burden and student race, ethnic, gender and income characteristics 4 years after receiving the bachelor's degree. The results indicate strong effects of family income, race and ethnicity on excessive educational debt burden among student borrowers. That is, students from lower-income backgrounds, Blacks and Hispanics have a significantly greater risk to have excessive educational debt burden 4 years after receiving the baccalaureate degree. Students with high educational debt burdens borrow more for college and have lower average salaries than do other students.

student loans educational debt race ethnicity economic class 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

REFERENCES

  1. Baum, S., and O'Malley, M. (2003). College on Credit:How Borrowers Perceive Educational Debt. Nellie Mae, Braintree, MA.Google Scholar
  2. Baum, S., and Saunders, D. (1998). Life After Debt:Results of the National Student Loan Survey. Nellie Mae, Braintree, MA.Google Scholar
  3. Bergen, M. B., and Zielke, D. D. (1979). Educational progress of basic educational opportunity grant recipients compared to non-recipients. Journal of Student Financial Aid 9(1):19–22.Google Scholar
  4. Blakemore, A. E., and Low, S. A. (1983). Scholarship policy and race-sex differences in the demand for higher education. Economic Inquiry 21:504–519.Google Scholar
  5. Blakemore, A. E., and Low, S. A. (1985). Public expenditures on higher education and their impact on enrollment patterns. Applied Economics 17:331–340.Google Scholar
  6. Choy, S. (2000). Debt Burden Four Years After College, NCES 2000188. National Center for Education Statistics, US Department of Education, Washington, DC.Google Scholar
  7. Cofer, J., and Somers, P. (1999). An analytical approach to understanding student debtload response. Journal of Student Financial Aid 29(3):25–44.Google Scholar
  8. Cofer, J., and Somers, P. (2000). A comparison of the influence of debtload on the persistence of students at public and private colleges. Journal of Student Financial Aid 30(2):39–58.Google Scholar
  9. College Board, The. (2002a). Trends in Student Aid, 2002. Author, New York.Google Scholar
  10. College Board, The. (2002b). Trends in College Pricing, 2002. Author, New York.Google Scholar
  11. Creamer, E. (1985). The impact of reductions in fifinancial aid on the enrollment plans of aid recipients. Journal of Student Financial Aid 15(3):5–10.Google Scholar
  12. Davis, J. S., and Johns, K., Jr. (1989). Changes in low-income freshmen participation in college, 1966 to 1986. Journal of Student Financial Aid 19(1):56–62.Google Scholar
  13. Green, P. J., Meyers, S. L., Giese, P., Law, J., Speizer, H. M., and Tardino, V. S. (1996). Baccalaureate & Beyond Longitudinal Study:1993/94 First Follow-Up Methodology Report, NCES 96-149. US Department of Education, National Center for Education Statistics. Project Officer, Paula Knepper, Washington, DC.Google Scholar
  14. Green, P. J., Myers, S., Veldman, C., and Pedlow, S. (1999). Baccalaureate & Beyond Longitudinal Study:1993/97 Second Follow-Up Methodology Report, NCES 99-159. US Department of Education, National Center for Education Statistics. Project Officer, Paula Knepper, Washington, DC.Google Scholar
  15. Heller, D. E. (1996). Tuition, Financial Aid, and Access to Public Higher Education. Unpublished Dissertation, Graduate School of Education, Harvard University.Google Scholar
  16. Heller, D. E. (1999). The effects of tuition and state financial aid on public college enrollment. Review of Higher Education 23(1):65–89.Google Scholar
  17. Heller, D. E. (2001). Debts and Decisions:Student Loans and Their Relationship to Graduate School and Career Choice. Lumina Foundation for Education, New Agenda Series, Indianapolis, IN.Google Scholar
  18. Hochstein, S. K., and Butler, R. R. (1983). The effects of the composition of a financial aid package on student retention. Journal of Student Financial Aid 13(1): 21–26.Google Scholar
  19. Hosmer, D. W., and Lemeshow, S. (2000). Applied Logistic Regression (2nd ed.). John Wiley and Sons, New York.Google Scholar
  20. Jackson, G. A. (1978). Financial aid and student enrollment. Journal of Higher Education 49(6):548–574.Google Scholar
  21. Kane, T. J. (1999). The Price of Admission:Rethinking How Americans Pay for College. Brookings Institution Press, Washington, DC.Google Scholar
  22. King, T., and Bannon, E. (2002). The Burden of Borrowing:A Report on the Rising Rates of Student Loan Debt. The State PIRG's Higher Education Project, Washington, DC.Google Scholar
  23. Long, J. S. (1997). Regression Models for Categorical and Limited Dependent Variables. Sage, Thousand Oaks, CA.Google Scholar
  24. Lumina Foundation for Education. (2002). Higher Education, Increasingly Important for All Americans, is Unaffordable for Many. Author, Indianapolis, IN, Illuminations.Google Scholar
  25. Manski, C. F., and Wise, D. A. (1983). College Choice in America. Harvard University Press, Cambridge.Google Scholar
  26. McCreight, K., and LeMay, M. (1982). A longitudinal study of the achievement and persistence of students who received basic educational opportunity grants. Journal of Student Financial Aid 12(1):11–15.Google Scholar
  27. McPherson, M. S., and Schapiro, M. O. (1991). Keeping College Affordable Government and Educational Opportunity. The Brookings Institution, Washington, DC.Google Scholar
  28. Millett, C. M. (2003). How undergraduate loan debt affects application and enrollment in graduate or first professional school. Journal of Higher Education 74(4).Google Scholar
  29. Mortenson, T. G. (1991). Financial aid problems for dependent students from low-income families. Journal of Student Financial Aid 21(3):27–38.Google Scholar
  30. Murdock, T. A. (1987). It isn't just money:The effects of financial aid on student persistence. The Review of Higher Education 11(1):75–101.Google Scholar
  31. National Center for Education Statistics. (2001). Digest of Education Statistics. US Department of Education, Washington, DC.Google Scholar
  32. National Center for Education Statistics. (2003). In:Clinedinst, M. E., Cunningham, A. F., and Merisotis, J. P. (eds.), Characteristics of Undergraduate Borrowers, 1999-2000. US Department of Education, Washington, DC.Google Scholar
  33. National Center for Public Policy and Higher Education. (2002). Losing Ground:A National Status Report on the Affordability of American Higher Education. Author, San Jose, CA.Google Scholar
  34. Orfield, G., and Ashkinaze, C. (1991). The Closing Door:Conservative Policy and Black Opportunity. University of Chicago Press, Chicago.Google Scholar
  35. Perna, L. W. (1998). The contribution of financial aid to undergraduate persistence. Journal of Student Financial Aid 28(3):25–40.Google Scholar
  36. Reyes, S. (1994). The College Enrollment Decision:The Role of the Guaranteed Student Loan. Unpublished Manuscript, Graduate School of Education, Harvard University.Google Scholar
  37. Scherschel, P. M. (1998). Student Indebtedness:Are Borrowers Pushing the Limits?. USA Group Foundation, Indianapolis, IN.Google Scholar
  38. Scherschel, P. M. (2000). Student Debt Levels Continue to Rise:Stafford Indebtedness, 1999 Update. USA Group Foundation, Indianapolis, IN.Google Scholar
  39. Schwartz, J. B. (1985). Student financial aid and the college enrollment decision:The effects of public and private grants and interest subsidies. Economics of Education Review 4(2):129–144.Google Scholar
  40. Scribney, W. (2001 [1997 ]). Are the estimates produced by probit and logit with the cluster option true likelihood estimates? Online at http://www. stata. com/support/ faqs/stat/svyml. html. Accessed May 20, 2003.Google Scholar
  41. Skinner, C. J. (1989). Introduction to part A. In:Skinner, C. J., Holt, D., and Smith, T. M. F. (eds.), Analysis of Complex Surveys. John Wiley & Sons, New York.Google Scholar
  42. Slamming Shut the Doors to College:The State Budget Crisis Higher Education. (2002). Congressional Report Prepared by the Democratic Staffs of Senators Kennedy, Harkin and Reid, and Representatives Miller and Obey. Washington, DC. Online at http://edworkforce. house. gov/democrats/higheredreport. pdf. Accessed September 26, 2002.Google Scholar
  43. Somers, P. A. (1994). The effects of price on within-year persistence. Journal of Student Financial Aid 24(1):31–45.Google Scholar
  44. St. John, E. P. (1989). The influence of student aid on persistence. Journal of Student Financial Aid 19(3):52–68.Google Scholar
  45. St. John, E. P. (1990). Price response in enrollment decisions:An analysis of the high school and beyond sophomore cohort. Research in Higher Education 31(2):161–176.Google Scholar
  46. St. John, E. P. (1991). The impact of student financial aid:A review of recent research. Journal of Student Financial Aid 21(1):18–32.Google Scholar
  47. St. John, E. P. (1998). The effects of changes in student aid policy on persistence:A case study of a private university. Journal of Student Financial Aid 28(1):7–18.Google Scholar
  48. St. John, E. P., and Eliot, R. J. (1994). Reframing policy research:A critical examination of research on federal student aid programs. In:Smart, J. C. (ed.), Higher Education:Handbook of Theory and Research (Vol. 10). Agathon Press, New York.Google Scholar
  49. Terkla, D. G. (1985). Does financial aid enhance undergraduate persistence? Journal of Student Financial Aid 15(3):11–18.Google Scholar
  50. Thomas, R. S. (1998). Black and Latino College Enrollment:Effects of Background, High School Preparation, Family and Peer Influence, and Financial Aid. Paper pre-sented at Annual Meeting of the American Educational Research Association, San Diego, CA.Google Scholar
  51. Thomas, S. L. (2003). Longer-term economic effects of college selectivity and control. Research in Higher Education 44(3):263–299.Google Scholar
  52. Thomas, S. L., and Heck, R. H. (2001). Analysis of large-scale secondary data in higher education research:Potential perils associated with complex sampling designs. Research in Higher Education 42(5):517–540.Google Scholar
  53. Thomas, S. L., and Zhang, L. (2001). Post-baccalaureate Wage Growth Within Four Years of Graduation:The Effects of College Major, Quality and Performance. Paper presented to 2001 Annual Meeting of the Association for the Study of Higher Education, Richmond, VA.Google Scholar
  54. US Department of Education, National Center for Education Statistics. (1997). Baccalaureate & Beyond Longitudinal Survey:93/97. Author, Washington, DC.Google Scholar
  55. Weiler, W. C. (1994). Transition from consideration of a college to the decision to apply. Research in Higher Education 35(6):631–646.Google Scholar

Copyright information

© Springer Science+Business Media, Inc. 2004

Authors and Affiliations

  • Derek V. Price

There are no affiliations available

Personalised recommendations