The Washington-based Institute for Higher Education Policy and Excelencia in Education have released a new report that examines the characteristics of students who are less likely to borrow for post-secondary education.
According to the report, Student Aversion to Borrowing: Who Borrows and Who Doesn’t, students who are adverse to borrowing to finance their education include older, financially independent students who have delayed their enrollment, part-time students, and members of certain ethnic or immigrant groups.
While it might appear advantageous for these students not to borrow and accumulate student loan debt, there is a downside too. In some cases, aversion to borrowing may limit students’ post-secondary enrollment choices and/or negatively impact their chances of successfully completing a program.
The top 3 suggested reasons why students may choose not to borrow for education, even if they have substantial unmet financial need, are as follows:
- Students may attend lower cost institutions or change their attendance pattern so that they face fewer expenses in a given semester and do not need to borrow.
- Students may use other financial resources to pay college expenses and not have to borrow.
- Students from certain racial/ethnic or immigrant groups may have a cultural or familial perspective on debt that encourages them not to borrow.
Looking for more?
Get the best of Maclean's sent straight to your inbox. Sign up for news, commentary and analysis.