Examining Financial Decisions and Actions among Undergraduates from Different 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 ongoing financial decisions made by low-income and working-class students while they are currently enrolled in higher education and how those decisions might differ from those made by their middle/upper-class peers. This paper examines the different financial decisions and behaviors of undergraduate students from five social class backgrounds using data from undergraduates enrolled at 11 large, public research universities in 2010. 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.