Exploring the Determinants of Utilizing PLUS Loans: Evidence From NPSAS 2016

• In Event: Funding Futures: Unpacking the Complexities and Limitations of Financial Aid and Philanthropy

Abstract

Parents’ financial support for their children’s college education has significantly increased in the United States. Generally, parents use their own assets or savings, but with the rise in college tuition, more parents are using PLUS (Parent Loan for Undergraduate Students) loans. A PLUS loan is a unique form of parental financial support where parents borrow money to help pay their children's college expenses. Despite their widespread use, little is known about the factors that predict PLUS loan usage. To address this, I explored how socioeconomic status, students’ characteristics, and college characteristics are associated with PLUS loan usage. Additionally, I conducted separate regressions based on race and parents’ education levels to examine differences.

Author

• Hyung-Jung Kim, SUNY - Cortland