Understanding Students’ Expected Earnings Beliefs after College at an HBCU

Gerald Daniels, Damon Jones, Lesley J. Turner and Brianna Youngblood

AEA Papers and Proceedings, 2026, vol. 116, 412-416

Abstract: Black borrowers tend to have higher student loan debt and worse financial outcomes than other racial groups, underscoring the importance of understanding how Black borrowers account for their ability to repay loans. This paper examines students’ baseline earnings beliefs as a precursor to a forthcoming intervention at a Historically Black College/University (HBCU). We administered a survey to compare students’ expected earnings to observed earnings data across majors. On average, respondents overestimated their expected earnings. These largely inaccurate beliefs could lead to suboptimal borrowing decisions, motivating the need for an intervention that will provide students with accurate and timely earnings information.

JEL-codes: D83 G51 I23 J15 J31 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1257/pandp.20261082

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