They found that, for black students, loans promoted staying in school and created a higher probability of finishing it
This usually causes the borrowers to default on their debt, which leads to bad credit
Jackson and Reynolds (2013) argued that even though student loans are achieving their goal of creating opportunities for students who could not otherwise attend or finish college, the goal of reducing educational inequality is not necessarily accomplished. However, this same study also found that black students usually had many outstanding loans, and when compared to white students, were more likely to default on their loan. (mais…)