Art Schools, Historically Black Colleges and Universities Are Over-Represented Among Schools Where Parents Borrow the Most
CHARLOTTE, N.C., May 21, 2020 /PRNewswire/ — As parent student loan borrowing rates continue to rise to historic levels, an especially large portion of those funds are going to art schools and Historically Black Colleges and Universities (HBCUs), according to a new report from student debt resource platform Student Loan Hero.
The report’s data indicates that art, music, and design schools are among the institutions where parents are borrowing the most for their children’s college education.
In addition to those schools, the other college segment that kept popping up on the list was that of HBCUs. Four HBCUs were among the top 10 schools where parents take on the most PLUS debt, and eight were in the top 50.
«HBCUs tend to have smaller endowments than other colleges, which can lead to less financial aid and fewer scholarship opportunities,» said Rebecca Safier, certified student loan counselor and higher-education expert. «Given this reality, combined with the racial wealth gap in the U.S., it’s unfortunate but not surprising that parents have to take on greater debt to send their children to these schools.»
Additional Key Findings
- Art, design and music schools make up half of the 10 schools where parents take on the most parent PLUS loans for their children — as well as 23 out of the top 50 schools with the most such debt.
- Historically Black Colleges and Universities (HBCUs) comprise 4 of the top 10 schools for parent PLUS debt, and 8 of the top 50.
- The average parent PLUS borrowing for full-time students ages 24 and under at the American Musical and Dramatic Academy in New York was about 10 times higher than the average amount borrowed across the other schools.
- Spelman College, a noted HBCU in Atlanta, has 47% of students have parents borrowing PLUS loans on their behalf.
- Parents often borrow significantly less for public HBCUs than for private ones.
Using data from the National Center of Education Statistics and Federal Student Aid for the 2017-2018 academic year, analysts calculated the number of parent PLUS loan borrowers per undergraduate, ages 24 and under, as well as the average amount borrowed per school. The analysis was limited to the 1,329 schools that were reported by Federal Student Aid, and which had at least 100 undergraduates under the age of 22 and where at least 50% of the undergraduate body were full-time students ages 24 and under.
About Student Loan Hero
Student Loan Hero, a subsidiary of LendingTree, combines easy-to-use tools with financial education to help the millions of Americans living with student loan debt manage and pay off their loans. The website provides information about repayment options, including refinancing, income-driven repayment, and deferment. Student Loan Hero has helped more than 250,000 borrowers manage and eliminate over $3.5 billion in student loan debt since 2012 and assists over 3.5 million people in becoming more financially healthy every year.
Founded in 2012 by CEO Andrew Josuweit, who himself had over $100,000 in student loans, Student Loan Hero operates on the belief that all loan help and recommendations should come with honesty and no hidden agenda.
For more information, visit https://studentloanhero.com.
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SOURCE Student Loan Hero