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

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 immediate academic experience, serve as disruptive barriers to success, delay or prolong graduation, or lead to increased debt upon graduation.