Why do higher-earnings students borrow? High-income family use to find a home; of a lot carry out the same to finance the youngsters’ professional degree, that will rates equally as much.

Another reason they borrow is because they can: there is no income or wealth limit for receiving federal financial aid. Loan eligibility is determined by the cost of attendance minus grant aid, not by family income. Indeed, the millionaire is often eligible to borrow far more because they do not qualify for grant aid, attend a more expensive college, and are more likely to complete college and go to graduate school.

A kid off millionaires is eligible in order to obtain the same number into the college loans while the a student just who was born in impoverishment

As a result, students borrow similar amounts for their education regardless of their family income. (suite…)