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Navigating the Financial Aid Process: Borrowing Outcomes among First-Generation and Non-First-Generation Students

Author

Listed:
  • Fernando Furquim
  • Kristen M. Glasener
  • Meghan Oster
  • Brian P. McCall
  • Stephen L. DesJardins

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.

Suggested Citation

  • Fernando Furquim & Kristen M. Glasener & Meghan Oster & Brian P. McCall & Stephen L. DesJardins, 2017. "Navigating the Financial Aid Process: Borrowing Outcomes among First-Generation and Non-First-Generation Students," The ANNALS of the American Academy of Political and Social Science, , vol. 671(1), pages 69-91, May.
    • Handle: RePEc:sae:anname:v:671:y:2017:i:1:p:69-91
    DOI: 10.1177/0002716217698119
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