Young, Black, and (Still) in the Red: Parental Wealth, Race, and Student Loan Debt

Race and Social Problems

Volumn 8, Issue 1, 2016, Pages 64-76

  Addo, Fenaba R ^a   Houle, Jason N ^b   Simon, Daniel ^c  

^a UNIVERSITY OF WISCONSIN MADISON   (United States)

^b DARTMOUTH COLLEGE   (United States)

^c UNIVERSITY OF COLORADO   (United States)

Author keywords

Parental wealth; Race; Student loans; Wealth; Young adulthood

Indexed keywords

EID: 84960091853     PISSN: 18671748     EISSN: 18671756     Source Type: Journal    
DOI: 10.1007/s12552-016-9162-0     Document Type: Article

References (67)

1. Addo, F. R. (2014). Debt, cohabitation, and marriage in young adulthood. Demography,51(5), 1677–1701.
2. Allison, P. D. (2001). Missing data. Thousand Oaks, CA: Sage Publications.
3. Bound, J., Lovenheim, M. F., & Turner, S. E. (2007). Understanding the decrease in college completion rates and the increased time to the baccalaureate degree. Ann Arbor: University of Michigan: Population Studies Center.
4. Brown, M., Haughwout, A., Lee, D., & van der Klaauw, W. (2011). Do we know what we owe? A comparison of Borrower- and Lender-reported consumer debt. Federal Reserve Bank of New York Staff Reports, no. 253. Federal Reserve Bank of NY, New York.
5. Bureau of Labor Statistics. (2009). Labor force statistics from the current population survey. Washington, D.C.: United States Department of Labor.
6. Bureau of Labor Statistics. (2010). Updated CPI-U-RS, all items and all items less food and energy, 1978–2009. http://www.bls.gov/cpi/cpiurs1978_2009.pdf.
7. Cancio, S. A., Evans, D. T., & Maume, D. J. (1996). Reconsidering the declining significance of race: Racial differences in early career wages. American Sociological Review,61, 541–556.
8. Carneiro, P., & Heckman, J. J. (2002). The evidence on credit constraints in postsecondary schooling. The Economic Journal,112, 702–734.
9. Cellini, S. R., & Goldin, C. (2014). Does Federal student aid raise tuition? New evidence on for-profit colleges. American Economic Journal: Economic Policy,6, 174–206.
10. Cha, K. W., Weagley, R. O., & Reynolds, L. (2005). Parental borrowing for dependent children’s higher education. Journal of Family and Economic Issues,26(3), 299–321.
11. Charles, C. Z., Roscigno, V. J., & Torres, K. (2007). Racial inequality and college attendance: The mediating role of parental investments. Social Science Research,36(1), 329–352.
12. Choy, S. P., & Berker, A. M. (2003). How families of low-and middle-income undergraduates pay for college: Full-time dependent students in 1999–2000 Postsecondary Education Descriptive Analysis Reports. Washington, D.C.: National Center for Education Statistics.
13. Clawson, D., & Leiblum, M. (2008). Class struggle in higher education. Equity and Excellence in Education,41(1), 12–30.
14. College Board. (2006). Trends in college pricing trends in higher education series. Washington, D.C.: The College Board.
15. College Board. (2010a). Paying for college: Students from middle-income backgrounds trends in higher education series. New York: College Board Publications.
16. College Board. (2010b). Trends in student aid trends in higher education series. Washington, D.C.: The College Board.
17. Conley, D. (1999). Being black, living in the red: Race, wealth, and social policy in America. Berkeley, CA: University of California Press.
18. Conley, D. (2001). Capital for college: Parental assets and postsecondary schooling. Sociology of Education,74(1), 59–72.
19. Cunningham, A. F., & Santiago, D. A. (2008). Student aversion to borrowing: Who borrows and who doesn’t. Washington, D.C: The Institute for Higher Education Policy.
20. Dwyer, R. E., McCloud, L., & Hodson, R. (2012). Debt and graduation from American Universities. Social Forces,90(4), 1133–1155.
21. Elliott, W., & Beverly, S. (2011). Staying on course: The effects of savings and assets on the college progress of young adults. American Journal of Education,117(3), 343–374.
22. Elliott, W., & Friedline, T. (2013). “You pay your share, we’ll pay our share”: The college cost burden and the role of race, income, and college assets. Economics of Education Review,33, 134–153.
23. Federal Reserve Bank of New York. (2013). Student loan debt by age group. Federal Reserve. https://www.newyorkfed.org/studentloandebt/index.html. Retrieved from December 7, 2015.
24. Federal Reserve Board. (2010). G.19 Consumer Credit. Federal Reserve Statistical Release. http://www.federalreserve.gov/releases/g19/20100607/. Retrieved from May 10, 2011.
25. Fitzpatrick, M., & Turner, S. E. (2007). Blurring the boundary: Changes in collegiate participation and the transtion to adulthood. In S. Danziger & C. E. Rouse (Eds.), The price of independence: The economics of early adulthood. New York: Russell Sage.
26. Furstenberg, F. F., Kennedy, S., McLoyd, V. C., Rumbaut, R. G., & Settersten, R. A. (2004). Growing up is harder to do contexts,3, 33–41.
27. Gaddis, S. M. (2015). Discrimination in the credential society: an audit study of race and college selectivity in the labor market. Social Forces,93, 1451–1479.
28. Gittleman, M., & Wolff, E. N. (2004). Racial differences in patterns of wealth accumulation. Journal of Human Resources,39, 193–227.
29. Goldrick-Rab, S., & Pfeffer, F. T. (2009). Beyond access: Explaining social class differences in college transfer. Sociology of Education,82(2), 101–125.
30. Grodsky, E., & Jones, M. (2007). Real and imagined barriers to college entry: Perceptions of cost. Social Science Research,36(2), 745–766.
31. Hossler, D., & Vesper, N. (1993). An exploratory study of the factors associated with parental savings for postsecondary education. The Journal of Higher Education,64(2), 140–165.
32. Houle, J. N. (2014). Disparities in debt: Parents’ socioeconomic status and young adult student loan debt. Sociology of Education,87, 53–69.
33. Hout, M., & Diprete, T. A. (2006). What we have learned: RC 28’s contributions to knowledge about social stratification. Research in Social Stratification and Mobility,24, 1–20.
34. Huelsman, M. (2015). The debt divide: The racial and class bias behind the “new normal” of student borrowing. New York, NY: Demos.
35. Integrated Postsecondary Education Data System. (2012). IPEDS analytics: Delta Cost Project Database.
36. Jackson, B. A., & Reynolds, J. R. (2013). The price of opportunity: Race, student loan debt, and college achievement. Sociological Inquiry,83, 335–368.
37. Johnson, A., Van Ostern, T., & White, A. (2012). The student debt crisis Washington. D.C.: Center for American Progress.
38. Kane, J., & Spizman, L. (1994). Race, financial aid awards and college attendance. American Journal of Economics and Sociology,53(1), 85–96.
39. Keane, M. P., & Wolpin, K. I. (2001). The effect of parental transfers and borrowing constraints on educational attainment. International Economic Review,42(4), 1051–1103.
40. Killewald, A. (2013). Return to being black, living in the red: A race gap in wealth that goes beyond social origins. Demography,50(4), 1177–1195.
41. Lee, K., & Carin, J. (2010). Multiple imputation for missing data: Fully conditional specification versus multivariate normal imputation. American Journal of Epidemiology,171(5), 624–632.
42. Looney, A., & Yannelis, C. (2015). A crisis in student loans? How changes in the characteristics of borrowers and in the institutions they attended contributed to rising loan defaults brookings papers on economic activity. Washington, D.C.: Brookings.
43. Lovenheim, M. F. (2011). The effect of liquid housing wealth on college enrollment. Journal of Labor Economics,29(4), 741–771.
44. Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young. The Journal of Consumer Affairs,44(2), 358–380.
45. Mauldin, T., Mimura, Y., & Lino, M. (2001). Parental expenditures on children’s education. Journal of Family and Economic Issues,22(3), 221–241.
46. McBrier, D. B., & Wilson, G. (2004). Going down? Race and downward occupational mobility for white-collar workers in the 1990’s. Work and Occupations,31(3), 283–322.
47. Nam, Y., Hamilton, D., Darity, W. A, Jr, & Price, A. E. (2015). Bootstraps are for black kids: Race, wealth, and the impact of intergenerational transfers on adult outcomes national asset scorecard for communities of color. Oakland, CA: Insight Center for Community Economic Development.
48. National Center for Education Statistics. (2013). Average undergraduate tuition and fees and room and board rates charged for full-time students in degree granting Institutions. Washington, D.C.: Institute of Education Sciences.
49. Nau, M., Dwyer, R. E., & Hodson, R. (2015). Can’t afford a baby? Debt and young Americans. Research in Social Stratification and Mobility, 42, 114–122.
50. Oliver, M. L., & Shapiro, T. (2006). Black Wealth, white wealth: A new perspective on racial inequality. New York: Routledge.
51. Orr, A. J. (2003). Black–white differences in achievement: The importance of wealth. Sociology of Education,76, 281–304.
52. Pfeffer, F. T., Danziger, S., & Schoeni, R. F. (2013). Wealth disparities before and after the great recession. The Annals of the American Academc of Political and Social Science,650(1), 98–123.
53. Project on Student Debt. (2011). Student debt and the class of 2010: The Institute for College Access and Success.
54. Ratcliffe, C., & McKernan, S.-M. (2013). Forever in your debt: Who has student loan debt, and who’s worried?. Washington, D.C.: Urban Institute.
55. Rodriguez, A. (2015). Understanding the Parent PLUS Loan debate in the context of black families. In D. Cunnigen & M. Bruce (Eds.), Race in the age of Obama: Part 2 (Research in Race and Ethnic Relations, Volume 19). United Kingdom: Emerald Publishing Group, Limited.
56. Rothstein, J., & Rouse, C. E. (2008). Constrained after college: Student loans and early career decisions NBER Working Paper.
57. Royston, P. (2005). Multiple imputation of missing values: Update of ice. Stata Journal,5(4), 527–536.
58. Ruch, R. S. (2001). Higher Ed, Inc.: The rice of the for-profit University. Baltimore, MD: John Hopkins University Press.
59. Schoeni, R. F., & Ross, K. E. (2005). Material assistance from familiies during the transition to adulthood. In R. A. Settersten, F. F. Furstenberg, & R. G. Rumbaut (Eds.), On the frontier of adulthood: Theory, research, and public policy (pp. 396–416). Chicago: University of Chicago Press.
60. Shanks, T. R. W., & Destin, M. (2009). Parental expectations and educational outcomes for young african american adults: Do household assets matter? Race and Social Problems,1, 27–35.
61. Shapiro, T. (2004). The hidden cost of being African American: How wealth perpetuates inequality. New York: Oxford University Press.
62. Steelman, L. C., & Powell, B. (1991). Sponsoring the next generation: Parental willingness to pay for higher education. American Journal of Sociology,96(6), 1505–1529.
63. Stewart, K. J., & Reed, S. B. (1999). Consumer Price Index research series using current methods, 1978–98. Monthly Labor Review, 122(6), 29–38.
64. Swartz, T. T. (2008). Family capital and the invisible transfer of privilege: Intergenerational support and social class in early adulthood. New Directions for Child and Adolescent Development,119, 11–24.
65. Tippett, R., Jones-DeWeever, A., Rockeymoore, M., Hamilton, D., & Darity, W. A, Jr. (2014). Beyond broke: Why Closing the racial wealth gap is a priority for national economic security. Washington, D.C.: Center for Global Policy Solutions.
66. Winship, C., & Radbill, L. (1994). Sampling weights and regression analysis. Sociological Methods and Research,23(2), 230–257.
67. Zhang, L. (2008). Gender and racial gaps in earnings among recent college graduates. Review of Higher Education,32, 51–72.