How Debt and Attainment Relate through the GPA of Non-White College Students

This study investigated the effects of U.S. student loans on attainment via the GPA of non-white undergraduates. The data for the study were drawn from the 2012/2017 Beginning Postsecondary Students Longitudinal Study (BPS: 12/17), encompassing a nationally representative sample of 1500 African American, Hispanic, Asian, multiracial, and other non-white students. The results, based on regression models and the bootstrapped confidence interval (BCI) method, indicated that student loans were associated with GPA, and both student loans and GPA were associated with attainment. Notably, the indirect effect of loan status on attainment was negative, whereas the indirect effect of high debt on attainment was positive. These findings highlight the indirect relationship between student loans and attainment and suggest that high debt has the potential to offset the negative effect of loan status on academic outcomes. The implications of these findings for higher education practice and policy debates are critical, particularly in the context of addressing non-white students’ financial needs and enhancing their academic outcomes.