Loans in the Long Game: How Student Debt Affects Financial Stress Post-Graduation
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| Title: | Loans in the Long Game: How Student Debt Affects Financial Stress Post-Graduation |
|---|---|
| Language: | English |
| Authors: | Thomas S. Zimmerman, Faye R. Jones, Avery M. D. Davis, Carley Dear |
| Source: | Journal of Student Financial Aid. 2024 53(3). |
| Availability: | Center for Economic Education at the University of Louisville. Porter Building, 1905 South 1st Street, Louisville, Ky, 40292. e-mail: jsfa@louisville.edu; Web site: https://ir.library.louisville.edu/jsfa/ |
| Peer Reviewed: | Y |
| Page Count: | 41 |
| Publication Date: | 2024 |
| Sponsoring Agency: | National Center for Education Statistics (NCES) (ED/IES) National Science Foundation (NSF) |
| Contract Number: | 2000799 |
| Document Type: | Journal Articles Reports - Research |
| Education Level: | Higher Education Postsecondary Education |
| Descriptors: | Debt (Financial), Student Loan Programs, Stress Variables, College Graduates, Financial Problems, Minority Group Students, Hispanic Americans, Minority Serving Institutions, Black Colleges, Money Management, Loan Repayment |
| Assessment and Survey Identifiers: | Baccalaureate and Beyond Longitudinal Study (NCES) |
| ISSN: | 0884-9153 |
| Abstract: | This study employs data from the National Center for Education Statistics' (NCES) Baccalaureate and Beyond Surveys to compare financial well-being among college graduates with varying social characteristics and levels of student debt. We use logistic regression to answer three questions: 1) To what extent does the amount of debt at graduation affect students' financial stress that they will be able to meet their fiscal obligations following graduation; 2) To what degree does this affect students from marginalized backgrounds; and 3) What are the postgraduate financial experiences of students who graduate from Hispanic Serving Institutions, Primarily Black Institutions, or Historically Black Colleges and Universities? Our project examines the relationship between cumulative federal student debt at the time of graduation and graduates' ability to meet financial obligations following degree completion. We found that students with higher direct loan amounts at graduation reported inability to meet financial obligations more often than students with lower amounts. Furthermore, we observed disparities in this relationship between demographic groups and institutional types, indicating a need for additional policies strategically designed to address equity issues in higher education. |
| Abstractor: | As Provided |
| IES Funded: | Yes |
| Entry Date: | 2025 |
| Accession Number: | EJ1468598 |
| Database: | ERIC |
| Abstract: | This study employs data from the National Center for Education Statistics' (NCES) Baccalaureate and Beyond Surveys to compare financial well-being among college graduates with varying social characteristics and levels of student debt. We use logistic regression to answer three questions: 1) To what extent does the amount of debt at graduation affect students' financial stress that they will be able to meet their fiscal obligations following graduation; 2) To what degree does this affect students from marginalized backgrounds; and 3) What are the postgraduate financial experiences of students who graduate from Hispanic Serving Institutions, Primarily Black Institutions, or Historically Black Colleges and Universities? Our project examines the relationship between cumulative federal student debt at the time of graduation and graduates' ability to meet financial obligations following degree completion. We found that students with higher direct loan amounts at graduation reported inability to meet financial obligations more often than students with lower amounts. Furthermore, we observed disparities in this relationship between demographic groups and institutional types, indicating a need for additional policies strategically designed to address equity issues in higher education. |
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| ISSN: | 0884-9153 |
