In 2021, over 561,000 families borrowed a Parent PLUS Loan (PPL) at an average amount of $17,810, representing 10% of all federal loan originations. The burden of PPLs disproportionately falls upon Black, Latinx, and low-income families who are more likely to borrow, borrow higher amounts, and face challenges in repayment.
With the support of Arnold Ventures, researchers gathered together to conduct a two-year, mixed-methods project that drew plausibly causal links between PPLs and students’ academic and extracurricular outcomes and contextualize borrowing and repayment by centering Black, Latinx, and low-income students and parents alongside financial aid administrators.
Existing research has overlooked the impact of PPLs on students’ short- and long-term outcomes and failed to document experiences of students, parents, and administratorsin the PPL arena. Although many students utilize PPLs, the program is a contributor to the racial wealth gap given differences in who borrows, how much they borrow, and where they attend.
Our study examined these overlooked factors and created a new research foundation for understanding how PPLs may contribute to inequalities in students’ outcomes and experiences.