Making Sense of Loan Aversion: Evidence from Wisconsin

The Promise of Free College (and Its Potential Pitfalls):

“…The most likely explanation is that some of the communications indicated that the funds were sufficient to cover all tuition and fees at the local two-year college, i.e., free community college. This was likely important to families given their aversion to loans (Goldrick-Rab & Kelchen, 2015). Half of the students' parents in the baseline survey reported that it was very or extremely "wrong .…”

Food insecurity among college students

“…Comparison across studies is important since most studies of food insecurity are composed of single institutions. The research about college students' experiences of food insecurity began with studies of single institutions (Chaparro, Zaghloul, Holck, & Dobbs, ; Crutchfield, ; Freudenberg et al, ; Gaines, Robb, Knol, & Sickler, ; Hanna, ; Maroto et al, ; Patton‐López et al, ), expanding only in the past 4 years to multi‐institutional studies of food insecurity among college students (Broton & Goldrick‐Rab, ; Dubick et al, ; Goldrick‐Rab, Broton, & Eisenberg, ; Goldrick‐Rab, Richardson, & Hernandez, ; Goldrick‐Rab, Richardson, Schneider, Hernandez, & Cady, ; Phillips, ). These studies use a variety of methods to collect their data, ranging from classroom‐based paper forms to email invitations to online surveys sent out to full populations of students.…”

“…These studies use a variety of methods to collect their data, ranging from classroom‐based paper forms to email invitations to online surveys sent out to full populations of students. Response rates also vary in these studies from 0.5 to almost 100% (Chaparro et al, ; Dubick et al, ), depending often on if the survey is administered via an online email invitation, through in‐person invitations to the full population in a student union, or in a classroom setting (see Chaparro et al, , Dubick et al, , and Goldrick‐Rab et al, for examples of different administration choices). From single institution studies that used a variety of measurement instruments, the literature is moving toward multi‐institutional and nationally representative studies that use one of the validated USDA food security modules, either the six‐item short form or the 10‐item adult form in most cases.…”

The impact of student loans on college access, completion, and returns

“…St. John and Noell () found that loan‐only financial aid packages did not boost college enrollment among Latino students and had a smaller positive effect on Black student enrollment, compared with other racial or ethnic groups. Debt aversion—or wanting to avoid taking on debt—is higher among low‐income, first‐generation, and minority college students (particularly Latinos) and could help explain these findings (Burdman, ; Goldrick‐Rab & Kelchen, ). Students who are averse to taking on debt, but whose financial aid packages contain loans, may avoid debt by choosing to not enroll in college, enrolling at a less expensive institution (e.g., a community college), or enrolling for fewer credit hours so they can work more (Callender & Jackson, ; Cunningham & Santiago, ).…”

“…Students who are averse to taking on debt, but whose financial aid packages contain loans, may avoid debt by choosing to not enroll in college, enrolling at a less expensive institution (e.g., a community college), or enrolling for fewer credit hours so they can work more (Callender & Jackson, ; Cunningham & Santiago, ). Research suggests that debt aversion may stem from unfamiliarity with the complex federal student loan system, discouragement from family members, or fear of not being able to complete college and pay back the debt (Burdman, ; Goldrick‐Rab & Kelchen, ). More research is needed to understand the causes of debt aversion, how it may influence students' decisions to go to college, especially among low‐income or underrepresented minority students because this could exacerbate educational inequalities.…”