Effects of Federal Loans on First-Year College Student Retention, Transfer, and Dropout
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| Title: | Effects of Federal Loans on First-Year College Student Retention, Transfer, and Dropout |
|---|---|
| Language: | English |
| Authors: | Rong Chen (ORCID |
| Source: | Journal of College Student Retention: Research, Theory & Practice. 2026 28(1):245-273. |
| Availability: | SAGE Publications. 2455 Teller Road, Thousand Oaks, CA 91320. Tel: 800-818-7243; Tel: 805-499-9774; Fax: 800-583-2665; e-mail: journals@sagepub.com; Web site: https://sagepub.com |
| Peer Reviewed: | Y |
| Page Count: | 29 |
| Publication Date: | 2026 |
| Document Type: | Journal Articles Reports - Research |
| Education Level: | Higher Education Postsecondary Education |
| Descriptors: | Student Financial Aid, Federal Aid, College Freshmen, School Holding Power, College Transfer Students, Dropouts, Student Loan Programs, African American Students, Academic Persistence, Family Income, Racial Differences |
| Assessment and Survey Identifiers: | Beginning Postsecondary Students Longitudinal Study |
| DOI: | 10.1177/15210251241252927 |
| ISSN: | 1521-0251 1541-4167 |
| Abstract: | This study utilizes marginal mean weighting through stratification (MMW-S) to analyze data from the Beginning Postsecondary Students 2012-2014 (BPS:12/14) survey. Specifically, this study estimates the effects of federal loan levels on first-year college students' decisions to persist by staying at their first institution or by transferring to another institution, or to drop out of the higher education system. Results indicate non-linear and heterogeneous effects of federal student loans. Compared with zero loans, having a low level of federal student loans is positively related to transferring to other institutions. Compared with zero loans, having a moderate level of loans is negatively associated with system dropout. Through interaction effect tests, we find some variation in these effects between students by race/ethnicity, with federal loans uniquely and adversely affecting Black student persistence. |
| Abstractor: | As Provided |
| Entry Date: | 2026 |
| Accession Number: | EJ1501376 |
| Database: | ERIC |
| Abstract: | This study utilizes marginal mean weighting through stratification (MMW-S) to analyze data from the Beginning Postsecondary Students 2012-2014 (BPS:12/14) survey. Specifically, this study estimates the effects of federal loan levels on first-year college students' decisions to persist by staying at their first institution or by transferring to another institution, or to drop out of the higher education system. Results indicate non-linear and heterogeneous effects of federal student loans. Compared with zero loans, having a low level of federal student loans is positively related to transferring to other institutions. Compared with zero loans, having a moderate level of loans is negatively associated with system dropout. Through interaction effect tests, we find some variation in these effects between students by race/ethnicity, with federal loans uniquely and adversely affecting Black student persistence. |
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| ISSN: | 1521-0251 1541-4167 |
| DOI: | 10.1177/15210251241252927 |
