Education Commons^™

The Impact Of Work-Study Participation On The Career Readiness Of Undergraduates, Allen J. Leonard, Patrick Akos Dr., Bryant Hutson

Journal of Student Financial Aid

The Federal Work-Study (FWS) program is an integral part of the federal financial aid plan in the United State since 1964 providing employment opportunities, financial assistance, and opportunities to improve career readiness to over 675,000 students annually. However, little investigation has been completed into the effects of participating in FWS in terms of either program effectiveness or as an effectiveness as a career development program. Previous research lacks consistent findings and focuses on academic outcomes, ignoring development aspects as well as the potential reframing of the program as a high-impact practice. This study assesses the career readiness of FWS eligible …

Who Do College Students Turn To For Financial Aid And Student Loan Advice, And Is It Advice Worth Following?, Casandra E. Harper, Lisa Scheese, Enyu Zhou, Rajeev Darolia

Journal of Student Financial Aid

In this article, we examine the sources of information that college students turn to as they make decisions related to financial aid and student loans. Based on interview data from 25 undergraduate students from one public, four-year institution, our results reveal a great amount of variation in the number and nature of sources on which students rely. Across nearly all cases, students believed their access to assistance to be insufficient. This was true even for students with parents who attended college—commonly considered to be a high-quality source of support for students, when available—as students often found their advice outdated, confusing, …

Hidden Inequality: Financial Aid Information Available To College Students With Disabilities Attending Public Four-Year Institutions, Emily L. Perlow, Ryan S. Wells, Mujtaba Hedayet, Jenny Xia, Heather Maclean, Emily Ding, Angela Mccall

Journal of Student Financial Aid

College students with disabilities often encounter systems and processes that do not serve them well. Financial aid, structured in ways that can be particularly burdensome to students with disabilities, is one such system. This study used web-based content analysis of the largest public four-year institution in each state to explore how institutions explain and provide information and resources related to financial aid and whether they are equitable, consistent, and useful for students with disabilities specifically. The findings suggest that available information most often does not assist students in understanding how their disability-related needs can be supported or hindered by financial …

The Role Of Student Debt And Debt Anxiety In College Student Financial Well-Being, Jill M. Norvilitis, Braden K. Linn

Journal of Student Financial Aid

This study examined predictors of three measures of financial well-being in 354 college students. Results suggest that perceptions of debt are important in understanding financial well-being, but these perceptions need to be considered alongside of individual differences in anxiety, optimism, and parental teaching. Further, regression analyses highlighted differences between predictors of perceived financial well-being and more and less frequent money saving behaviors, which may indicate different paths for intervention. Specifically, students reporting engaging in less common financial strain behaviors appear to have more objective financial difficulties, whereas students reporting more common financial strain behaviors report more factors that suggest difficulty …

Financial Knowledge Or Financial Situations? Toward Understanding Why Some College Students Use Credit Cards To Pay For College Tuition, Benjamin D. Andrews

Journal of Student Financial Aid

While the majority of college students use credit cards for educational expenses like textbooks, recent data reports that college students also use credit cards to directly fund their schooling by charging for at least some part of their tuition (Sallie Mae, 2009). Because credit cards carry a higher interest rate than student loans, and because they do not have a period of deferred payment while a student is enrolled in school, credit cards are a particularly risky method of payment that students resort to in order to attend college. Why do college students participate in such risky spending behavior to …

Factors Associated With Parent And Student Debt Of Bachelor’S Degree Recipients, Robert Kelchen

Journal of Student Financial Aid

Parent PLUS loans are a growing concern due to their limited income-driven repayment protections and their potential to maintain longstanding racial wealth gaps. Previous research has examined factors associated with student debt burdens of college graduates, but no research has examined factors related to parent borrowing for college. In this brief, I use newly-released College Scorecard data to explore student and institutional characteristics associated with federal student loans and Parent PLUS loans of two recent bachelor’s degree cohorts. I find meaningful differences in how certain characteristics are associated with student and parent debt, particularly gender, family income, and institutional selectivity.

The North Carolina Teaching Fellows Program: A Case Study Of The Use Of Forgivable Loans In Recruiting Future Stem Teachers, Katie N. Smith

Journal of Student Financial Aid

In 2018-2019, North Carolina implemented a loan forgiveness program to recruit talented postsecondary students into teaching majors in needed subject areas. This qualitative case study analyzes the influence of the North Carolina Teaching Fellows Program (NCTFP) on 10 student participants’ college, major, and career plans in STEM education to understand how loan incentives shaped student interest in teaching careers in STEM subjects. Findings reveal that forgivable loan funding influenced college choice among those choosing institutions at the time of NCTFP acceptance. While the NCTFP was most appealing to participants who already planned to become STEM educators, there is also evidence …

Money Matters: Factors Associated With Receipt Of Financial Aid Among Youth Who Have Experienced Foster Care, Jacob P. Gross, Jennifer M. Geiger, Greg King, Samuel King

Journal of Student Financial Aid

Despite high aspirations, youth formerly in foster care may face significant barriers (e.g., academic preparedness, adult mentoring) to obtaining a postsecondary credential. Better understanding the relationship between affordability and postsecondary access for youth formerly in foster care (YFFC) merits attention from researchers because finances often present a barrier to success for this population of students. This exploratory study asks the question: What factors influenced whether YFFC received financial aid and do those factors change over time? Using event history analysis and national longitudinal on foster care and youth outcomes, we explore what factors impact whether a YFFC receives financial aid.

Another Lesson On Caution In Idr Analysis: Using The 2019 Survey Of Consumer Finances To Examine Income-Driven Repayment And Financial Outcomes, Daniel Collier, Dan Fitzpatrick, Christopher R. Marsicano

Journal of Student Financial Aid

We update Collier et al. (2021) by using the Survey of Consumer Finances (SCF) 2019 dataset to explore characteristics of enrollees in Income-Driven Repayment (IDR). SCF 2019 is more likely to include borrowers engaged in REPAYE. Findings support an ongoing need to encourage greater IDR participation for lowest-income borrowers and reinforce greater participation by female borrowers. Again, model specification affects findings regarding IDR enrollment. REPAYE appears to have widened access to IDR by lowering the debt floor for entry. IDR enrollment was correlated with less money in a traditional checking account and a lower chance of engaging in retirement savings.

(De)Glossing Financial Aid: Do Colleges And Universities Actually Use Financial Student Aid Jargon?, Zachary W. Taylor, Laura Manor

Journal of Student Financial Aid

Decades of research has suggested that completing the Free Application for Federal Student Aid (FAFSA) can be a complex, difficult process for postsecondary students and their support networks. However, no extant research has informed federal student aid practitioners and researchers as to what federal student aid jargon terms institutions of higher education actually use in their application instructions to complete the FAFSA. To fill this gap in the research, this study adopts a distributional linguistic approach to analyze a random sample of federal student aid application instructions published on institutional websites (.edu) over three years (2017, 2018, and 2019) to …

Student Repayment Crisis And The Value Of Higher Education And The Economy In California’S Kern County, Elisa P. Queenan, Brian D. Street

Journal of Student Financial Aid

The cost of post-secondary education (PE) continues to increase, which has contributed to elevating federal loan demand, and as of the fourth quarter of 2020, equaling a debt of $1.56 trillion in the US. The purpose of this research was to compare two post-secondary institutions for specific alignment with the local labor market, examine institutional economic benefits and costs, and impact of loan default. Bakersfield College (BC) and California State University, Bakersfield (CSUB) are both public, Hispanic Serving Institutions, in central California. Despite similarities, loan default rates of each institution differ; six-year mean rates, 24.6% at BC, 7.7% at CSUB. …

Institutional And State-Level Factors Related To Paying Back Student Loan Debt Among Public, Private, And For-Profit Colleges, Amy Y. Li, Robert Kelchen

Journal of Student Financial Aid

In this study, we examine whether institutional-level characteristics, student demographics, and state conditions are associated with student loan repayment rates and cohort-level loan default rates. We separately explore these characteristics for each of four higher education sectors: public 2-year colleges, for-profit colleges, public 4-year colleges, and private 4-year colleges. We conduct a series of multiple linear regressions on a sample of 2,375 colleges. Estimates suggest that across all sectors except at for-profits, colleges enrolling a higher percentage of historically underrepresented students, including first-generation and African American/Black students, report lower repayment rates. Additionally, a higher percentage of students enrolled who file …

Higher Education: Can Debt Beat Savings?, David Stackpole

Journal of Student Financial Aid

This paper investigates the possible opportunity cost of using standard college savings plans against the advantages of using debt to pay for college. In addition, it presents a practical argument for using debt in place of college savings plans in certain instances.

By doing so, investors may not only be able to mitigate the difficulty of saving, but also realize greater financial benefit in the long run.

The History Of Denying Federal Financial Aid To System-Impacted Students, Bradley D. Custer

Journal of Student Financial Aid

People who are impacted by the criminal justice system (“system-impacted”) face barriers when seeking financial aid to pay for college. Between the late 1960s and the early 2000s, Congress created laws that prohibited incarcerated students and students with certain criminal convictions from receiving federal grants and loans. This paper offers a comprehensive review of the history of those laws, which provides context for current debates on restoring Pell Grants to students in prison. Legislative documents, scholarly sources, and news reports were studied to build this historical review. Key lessons from history are discussed as to how Congress might treat system-impacted …

Estimating The Spillover Effects Of The Tennessee Promise: Exploring Changes In Tuition, Fees, And Enrollment, Elizabeth Bell

Journal of Student Financial Aid

Tuition-free college policies have gained momentum since the implementation of the Tennessee Promise, which provides financial aid to students pursuing two-year post-secondary degrees in Tennessee. While previous research has addressed the effects of similar programs on student outcomes, scholars have yet to thoroughly investigate potential spillover effects of Promise policies on colleges that are ineligible for Promise funds. In this paper, I leverage a difference-in-differences design to explore changes in enrollment and tuition and fees at institutions eligible and ineligible for Tennessee Promise funds. First, I find that in-state enrollment increased significantly at public Promise eligible institutions (mainly public two-year …

Does The House Always Win? An Analysis Of Barriers To Wealth Building And College Borrowing, Katherine E. Fletcher, Matthew B. Fuller

Journal of Student Financial Aid

The racial differences in student loan debt must be interpreted through a lens of wealth building inequality. Black individuals in particular are negatively affected by official and unofficial policies that create barriers to building wealth. Financial aid policies then exacerbate this inequality with an Expected Family Contribution (EFC) formula that protects the majority of family assets from being used as required educational contributions. Using the 2011-12 National Postsecondary Student Aid Survey (NPSAS:12) , we examined differences in student loan debt based on wealth building barriers (students’ access to banks, father’s education, and mother’s education). Our ANOVA models show cumulative loan …