Financial Decisions among Undergraduate Students from Low-Income and Working-Class Social Class Backgrounds

Abstract

Low-income and working-class students face many challenges related to the costs and affordability of higher education; yet, little is known about the financial decisions made by these groups of students while they are enrolled in higher education and how their decisions might differ from middle/upper-class students. Using data from students enrolled at six large, public research universities in 2012, researchers examined 16 different financial decisions of undergraduate students. Results suggest that low-income and working-class students are more likely to make decisions that could negatively impact their immedi-ate academic experience, serve as disruptive barriers to success, delay or prolong graduation, or lead to increased debt upon graduation.