Navigating the Financial Aid Process: Borrowing Outcomes among First-Generation and Non-First-Generation Students. Issue 1 (May 2017)

• Record Type: Journal Article
• Authors: Furquim, Fernando; Glasener, Kristen M.; Oster, Meghan; McCall, Brian P.; DesJardins, Stephen L.
• Other Names: Perna Laura W. guest-editor.; Hillman Nicholas guest-editor.
• Is Part Of: Annals of the American Academy of Political and Social Science. Volume 671:Issue 1(2017:May)
• Page Start: 69
• Page End: 91
• Publication Date: 2017-05
• Subjects: student loan -- financial aid -- first-generation students -- hurdle model -- decomposition; Social sciences -- Periodicals; Social sciences -- United States -- Periodicals; Political science -- Periodicals; United States -- Politics and government -- Periodicals; 300
• DOI: 10.1177/0002716217698119
• Languages: English
• ISSNs: 0002-7162

Abstract

A growing number and proportion of students rely on student loans to assist with the costs of postsecondary education. Yet little is known about how first-generation students use federal loans to finance their education. In this article, we examine each of the decisions that culminate in student indebtedness: the decision to apply for aid, whether to borrow, and how much to borrow. We find significant differences by generational status at each step of the student borrowing process. First-generation students are more likely to apply for financial aid, borrow, and take out larger loans than their peers, after controlling for a rich set of covariates for costs and financial resources. We find that student characteristics cannot fully explain these observed differences in borrowing outcomes across generations.