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“You pay your share, we’ll pay our share”: The college cost burden and the role of race, income, and college assets

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  • Elliott, William
  • Friedline, Terri

Abstract

Changes in financial aid policies raise questions about students being asked to pay too much for college and whether parents’ college savings for their children helps reduce the burden on students to pay for college. Using trivariate probit analysis with predicted probabilities, in this exploratory study we find recent changes in the financial aid system place a higher responsibility on African American, Latino/Hispanic, and moderate-income students to pay for college themselves. We also find when parents open a savings account, start a state-sponsored savings plan, or open a college investment fund students are less likely to pay for college with student contributions. Therefore, we suggest in addition to grants and scholarships, policies that encourage accumulation of savings for college among minority and lower income families may help reduce the college cost burden they experience.

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  • Elliott, William & Friedline, Terri, 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, Elsevier, vol. 33(C), pages 134-153.
    • Handle: RePEc:eee:ecoedu:v:33:y:2013:i:c:p:134-153
    DOI: 10.1016/j.econedurev.2012.10.001
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    1. Dominique J. Baker & William R. Doyle, 2017. "Impact of Community College Student Debt Levels on Credit Accumulation," The ANNALS of the American Academy of Political and Social Science, , vol. 671(1), pages 132-153, May.
    2. Jinhee Kim & Swarn Chatterjee, 2019. "Student Loans, Health, and Life Satisfaction of US Households: Evidence from a Panel Study," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 36-50, March.
    3. Despard, Mathieu R. & Perantie, Dana & Taylor, Samuel & Grinstein-Weiss, Michal & Friedline, Terri & Raghavan, Ramesh, 2016. "Student debt and hardship: Evidence from a large sample of low- and moderate-income households," Children and Youth Services Review, Elsevier, vol. 70(C), pages 8-18.
    4. Nam, Yunju, 2021. "Parents’ financial assistance for college and black-white wealth disparity," Children and Youth Services Review, Elsevier, vol. 128(C).
    5. Friedline, Terri & Rauscher, Emily & West, Stacia & Phipps, Barbara & Kardash, Nadzeya & Chang, Karin & Ecker-Lyster, Meghan, 2017. "“They will go like I did”: How parents think about college for their young children in the context of rising costs," Children and Youth Services Review, Elsevier, vol. 81(C), pages 340-349.
    6. Anne Blumenthal & David W. Rothwell, 2018. "The Measurement and Description of Child Income and Asset Poverty in Canada," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(6), pages 1907-1933, December.
    7. Nam, Yunju, 2020. "Parents’ financial assistance for college and black-white disparities in post-secondary educational attainment," Children and Youth Services Review, Elsevier, vol. 110(C).
    8. Messacar, Derek & Frenette, Marc, 2019. "Education savings plans, matching contributions, and household financial allocations: Evidence from a Canadian reform," Economics of Education Review, Elsevier, vol. 73(C).
    9. Zhan, Min & Xiang, Xiaoling & Elliott, William, 2016. "Education loans and wealth building among young adults," Children and Youth Services Review, Elsevier, vol. 66(C), pages 67-75.
    10. Elliott, William & Sherraden, Michael, 2013. "Assets and educational achievement: Theory and evidence," Economics of Education Review, Elsevier, vol. 33(C), pages 1-7.
    11. Allyson Flaster, 2018. "Kids, College, and Capital: Parental Financial Support and College Choice," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(8), pages 979-1020, December.
    12. Catherine A. Manly & Ryan S. Wells & Genia M. Bettencourt, 2017. "Financial Planning for College: Parental Preparation and Capital Conversion," Journal of Family and Economic Issues, Springer, vol. 38(3), pages 421-438, September.

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