Measuring Racial Disparities in Higher Education and Student Debt Outcomes

Rajashri Chakrabarti, William Nober and Wilbert van der Klaauw

No 20200708c, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: Across the United States, the cost of all types of higher education has been rising faster than overall inflation for more than two decades. Despite rising costs, aggregate undergraduate enrollment rose steadily between 2000 and 2010 before leveling off and dipping slightly to its current level. Rising college costs have steadily increased dependence on student debt for college financing, with many students and parents turning to federal and private loans to pay for higher education. An earlier post in this series reported that borrowers in majority Black areas have higher student loan balances and rates of default than those in both majority white and majority Hispanic areas. In this post, we study how differences in college attendance rates and in the types of colleges attended generate heterogeneity in loan experiences. Specifically, using nationwide data, we analyze heterogeneities in college-going and heterogeneities in student debt and default experiences by college type across individuals living in majority Black, majority Hispanic, and majority white zip codes.

Keywords: student debt; college; diversity; default; race (search for similar items in EconPapers)
JEL-codes: D14 J0 Q12 (search for similar items in EconPapers)
Date: 2020-07-08
Note: Heterogeneity Series III: Credit Market Outcomes
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