Research Roundup: Parent PLUS College Loans Disproportionately Burden Black Families, HBCUs

Student debt is not out of the ordinary for families in the U.S., but a Medill News Service report shows parent borrowing is disproportionately burdening Black families and those who attend historically Black colleges and universities (HBCUs). The federal government’s Parent PLUS Loan is becoming popular among lower-income parents as a last-ditch effort to help afford education costs. Now, it’s placing them under debts that reach up to six figures.

The Parent PLUS Loan began in the 1980s to help upper- and middle-income families pay for their children’s education while keeping their assets liquid. The loan has high interest rates, and the program checks only a borrower’s credit history and not the borrower’s ability to repay it. It is not ideal for those in lower-income brackets, but it is sometimes the last remaining option for many families who want to educate their children.

They are often a final attempt at covering the costs that remain after students max out on other loans.

Continue reading this and all our content with a Fair360 subscription.

Gain company-wide access to our premium content including our monthly webinars, Meeting in a Box, career advice, best practices, and video interviews with top executives.MembershipsAlready a member? Sign in.

Related

Trending Now

Follow us

Most Popular

Join Our Newsletter

Get the top workplace fairness news delivered straight to your inbox