Student Aversion to Borrowing: Who Borrows and Who Doesn't

Student Aversion to Borrowing: Who Borrows and Who Doesn't

Higher education experts increasingly are concerned that an aversion to borrowing could limit college enrollment choices for some students. A new report from the Institute for Higher Education Policy and Excelencia in Education, Student Aversion to Borrowing: Who Borrows and Who Doesn't (40 pages, PDF), found that students averse to borrowing may attend lower-cost institutions, change their attendance pattern, or utilize other financial resources to avoid borrowing, and that students from certain racial, ethnic, or immigrant groups may have a cultural perspective on debt that encourages them not to borrow. Funded by the Education Resources Institute, USA Funds, and TG, a public nonprofit corporation that administers the Federal Family Education Loan Program (FFELP), the report also found that about 30 percent of non-borrowers enrolled part-time (compared with 14 percent of borrowers) and that 27 percent of non-borrowers lived with their parents (compared with 16 percent of borrowers).