The Effect of Loans on the Persistence and Attainment of Community College Students

This study informs public policies regarding the use of subsidized loans as financial aid for community college students. Using logistic regression, it analyzes the National Center for Education Statistics' Beginning Postsecondary Students (BPS 90/94) data to predict persistence to the second y...

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Bibliographic Details
Published inResearch in higher education Vol. 47; no. 1; pp. 33 - 62
Main Authors Dowd, Alicia C., Coury, Tarek
Format Journal Article
LanguageEnglish
Published New York Springer Science 01.02.2006
Springer
Springer Nature B.V
Subjects
Academic degrees
Academic Persistence
Associate Degrees
College students
Colleges
Colleges & universities
Community College Students
Community Colleges
Educational Attainment
Grants
Higher education
Public Policy
Student Financial Aid
Student Loan Programs
Student loans
Tuition
Two Year College Students
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Summary:This study informs public policies regarding the use of subsidized loans as financial aid for community college students. Using logistic regression, it analyzes the National Center for Education Statistics' Beginning Postsecondary Students (BPS 90/94) data to predict persistence to the second year of college and associate's degree attainment over five years. During the period under study, loans did not contribute to higher persistence and attainment rates. Loans are observed to have a negative effect on persistence and no effect on degree attainment. Estimates of the interaction effects of borrowing and income status are insignificant but demonstrate the need for further testing. The findings are attributed to a combination of the high uncertainty of degree completion among community college students and the negative affective component of indebtedness.
ISSN:0361-0365
1573-188X
DOI:10.1007/s11162-005-8151-8