Studies provide insights about student loan debt and first-generation students
The Minnesota Private College Research Foundation keeps a close watch on studies and surveys on higher education issues. Here are findings from two recent studies:
Students’ debt impacts their career choices according to a new report. The National Bureau of Economic Research analyzed student data from a highly selective institution which introduced a “no loans” policy where the loan component of financial aid awards was replaced with grants. Data suggests:
- Each $10,000 in debt reduced the likelihood that an individual will take a job in nonprofits, government or education by approximately 5 to 6 percentage points. Debt specifically impacted students choice of education related jobs (-3.3 percentage points).
- Students with debt were more likely to be economics or engineering majors — both associated with higher paying jobs.
- For each $10,000 in debt, graduates accepted jobs that paid on average $2,000 more per year.
- Debt did not effect whether students pledged donations to their institution. However, students with debt were less likely to follow through on pledges.
Source: Constrained After College: Student Loans and Early Career Occupational Choices
Receiving financial aid identified as important by first-generation students in their selection of private institutions, according to a new survey. The Cooperative Institutional Research Program’s Freshman Survey of first-generation students — those whose parents have never been enrolled in postsecondary education — reports these findings:
- The gap between the proportion of first-generation students at public and private four-year colleges has narrowed (17.5 percent at public colleges as compared to 12.8 percent at private college institutions).
- As compared to first-generation students at public institutions, private first generation students are more likely to have an annual family income of $40,000 or more (57.8 percent vs. 49.4 percent), more likely to have attended a private high school (18.1 percent vs. 7.1 percent) and more likely to have an A+ or A high school grade point average (40.6 percent vs. 36.2 percent).
- First-generation students at private colleges cited financial assistance (56 percent) and college size (49 percent) as key factors in their college choice decision.