Impact of Debt Avoidance on Retention and Completion Rates of Undergraduate Students

• In Event: Beyond Borders: Global Learning and Student Achievement

Abstract

This study investigates the relationship between debt avoidance strategies and student persistence and graduation rates at four-year public institutions. Utilizing the Beginning Postsecondary Students (BPS) 2012:17 dataset, we employ logistic regression analyses to explore how three specific debt avoidance strategies—working more hours, taking fewer classes, and attending less expensive schools—affect the likelihood of third-year retention and six-year graduation. Results show that working more hours and taking fewer classes are negatively associated with student persistence and graduation rates and might undermine long-term educational success. We propose debt aversion as a crucial concept impacting academic trajectories and underscore the need for policies that support effective financial planning without compromising educational attainment.

Authors

• Xiaoxia Zhang, Indiana University

• Daniela Castellanos-Reyes, North Carolina State University

• Carl Forney, Ohio University

• Brittani Williams, Generation Hope

• Fawzia A. Abbas, University of Maryland - Eastern Shore

• Garam Chu, Emory Unviersity