How Are Students Constrained? The Relationship Between Student Debt and Choice of Major

• In Event: 207 - Section on Sociology of Education Roundtable Session (one-hour).
  In Refereed Roundtable: Section on Sociology of Education Roundtables (one-hour). Table 01. STEM: Access, Aspirations, and Attainment

Abstract

Previous studies on factors influencing the choice of college major have primarily focused on determinants other than expected student debt. However, literature suggests that financial constraints influence many student behaviors. Past studies addressing this relationship do not focus on the increasing divergence between fields of study into STEM and non-STEM fields. This study focuses on the differential impact of expected student debt on decision to pursue STEM fields over non-STEM fields by gender. Using data from the Baccalaureate and Beyond 2008-2009, I evaluate the relationship between expected student debt and the probability of a student pursuing a STEM field of study over a non-STEM one. With the use of probit regression model, the results suggest that expected student debt is an element in deciding to pursue STEM fields of study over non-STEM fields of study. The relationship between the level of expected student debt and choice of pursuing STEM fields of study over non-STEM fields of study was found to be positive and statistically significant. Furthermore, females are found to be more debt averse than males which results in expected student debt more heavily influencing their choices in pursuing STEM fields over non-STEM fields. Results can be used by government, academic institutions, and labor markets to consider alternatives to current student debt structures including expanded subsidies to offset increasing debt burdens.

Authors

• Tiffany Tsai, Stanford University

• Mana Nakagawa, Stanford University