Digest No. 06 - June 2019
The purpose of this study was to offer advice concerning the relationship between educational loans and graduation rates and how this relationship varies based on race and ethnicity. The authors appropriately used discrete-time survival analytic techniques to determine the borrowing patterns of 3,445 individuals across 15 survey administrations. Limited by their secondary data source (the 1997 National Longitudinal Survey of Youth), the authors were unable to pinpoint the type of loan (subsidized, unsubsidized, state, federal, or private) and its relationship to graduation rates, but they were able to identify the amount borrowed that seemed to tip the scales in favor of not completing college. In short, educational loans shared a positive relationship with graduation rates, but only up to a point: $19,753. Beyond that figure, the relationship between educational loans and graduation rates began to weaken for everyone, including students who identified as black or, in the authors’ language, “Hispanic” (p. 993).