African Americans Are More Reluctant Than Others to Take on Student Loan Debt

A new study by scholars at Peabody College of Vanderbilt University in Nashville, Tennessee, examines the subject of loan aversion among prospective U.S. college students and how it impacts enrollment rates at institutions of higher education. Loan aversion is defined as an unwillingness to take on debt to finance educational pursuits.

The three authors, all assistant professors of public policy and higher education at Vanderbilt University, surveyed 6,000 high school seniors, community college students, and young adults without a college degree. Some 20 percent of young adults and 22 percent of high school seniors opposed borrowing money for college. Only 9 percent of community college students opposed borrowing money for college.

The results found there were differences in loan aversion between demographics groups. Students from families where the parents had no college experience (a group where there is a disproportionate percentage of African Americans) were more loan averse than other students. The study also found that Black students were 7 percent more likely than other students to not consider financial aid packages that had a student loan component.

Angela Boatman, the lead author of the study said, “we find that loan aversion is widespread among potential and current college students and varies in different populations.” She adds that students who are loan adverse end up “working more hours when enrolled, choosing a two-year college instead of a four-year college, or enrolling part-time instead of full-time, which can affect persistence and success in college.”

The full study, “Understanding Loan Aversion in Education: Evidence from High School Seniors, Community College Students, and Adults,” was published on the website of AREA Open, a journal of the American Educational Research Association. It may be found here.

Related Articles

2 COMMENTS

  1. This is good news considering that most blacks who attend college don’t graduate and if they do, a lot of the time whatever they earn from their jobs doesn’t warrant having borrowed money for college in the first place. Most blacks who attend college get a lot of student loan debt and no degree to show for it.

    • David, I’m not liking your comments or assumptions on the black community as if you are the expert. It’s not your place to say most blacks don’t graduate as if being white is the solution

Leave a Reply

Get the JBHE Weekly Bulletin

Receive our weekly email newsletter delivered to your inbox

Latest News

California State University Sacramento Launches Black Honors College

Officially launching for the fall 2024 semester, the Black Honors College will support students from all backgrounds who study Black history, life, and culture by providing them with a specialized curriculum and mentoring opportunities.

Higher Education Gifts or Grants of Interest to African Americans

Here is this week’s news of grants or gifts to historically Black colleges and universities or for programs of particular interest to African Americans in higher education.

In Memoriam: Norman B. Anderson, 1955-2024

Dr. Anderson was the assistant vice president for research and academic affairs at Florida State University at the time of his death. He had an extensive career in clinical psychology, which led him to become the first African American chief executive officer of the American Psychological Association.

Georgia State University Launches Program to Support Black Women in Tech

While Black women account for roughly 29 percent of the Georgia State University undergradaute student body, they represent only 10 percent of the university's computer science majors and 18 percent of the computer information systems majors.

Featured Jobs