Student Aversion to Borrowing: Who Borrows and Who Doesn't

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Date

2008-12-01

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Journal ISSN

Volume Title

Publisher

Institute for Higher Education Policy

Abstract

A basic tenet of the Higher Education Act—that no one should be denied the opportunity for an education because of a lack of money—is just as relevant today as it was in 1965. However, for millions of students, the increasing cost of a college education, combined with lower rates of growth in grant aid, have resulted in additional reliance on student loans to pay for college. The large and growing role of student loans introduces a concern that an aversion to borrowing could be limiting college enrollment choices for some students. This report investigates this possibility by highlighting the characteristics of undergraduate students who are least likely to borrow, using a number of quantitative demographic and enrollment characteristics as well as information from interviews with students and financial aid administrators. It presents a clear picture of the borrowing patterns of students who choose to enroll in college and provides suggestions about why certain students may not borrow, even when borrowing seems to be a logical choice.

Description

Keywords

Higher Education Act, undergraduate students, student financial aid, educational attainment, higher education costs

Citation