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Journal of Student Financial Aid

Journal of Student Financial Aid

Short Title

Gender and Racial Gaps in Student Shadow Debts

Abstract

This exploratory study delves into the intricate landscape of student debt by spotlighting the demographics of non-returning university students who grapple with unpaid bursar bills, a type of shadow debt not visible in traditional assessments of loan borrowing and repayment. Analysis of such shadow debt at one regional Midwest institution reveals that underrepresented minority students and female students are disproportionately burdened, facing 117% and 19% higher odds of unpaid institutional balances being sent to collections, respectively. These findings illuminate the urgent need for 1) tailored interventions that can bolster the resilience of at-risk students, effectively addressing and alleviating the financial hurdles they encounter while still in school; and 2) institutional attention to redress bias in debt collection practices. This study serves as a critical stepping stone toward ongoing research into shadow debt in higher education, offering a nuanced analysis of the multiple factors involved in its accumulation and hypothesizing its impact on student success and/or non-completion.

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