Black Parent PLUS borrowers default at disproportionately high rates compared with White parent borrowers¶

Claim · All claims
Evidence · 1 study · associational r? · q2
Currency · newest study 2023 · not yet checked against its sources · not reviewed by a person · recheck by 2028: baselines and conditions change

Subclaims¶

q2 i? Twenty percent of Black Parent PLUS borrowers default versus only 5% of White parent borrowers, even though Parent PLUS default rates overall are lower than student loan default rates. → Victoria Jackson 2023

Evidence¶

Victoria Jackson 2023¶

Victoria Jackson, Brittani Williams, and Jalil B. Mustaffa. (2023). Parent PLUS Loans Are a Double-Edged Sword for Black Borrowers. The Education Trust. https://edtrust.org/resource/parent-plus-loans-are-a-double-edged-sword-for-black-borrowers

q2 · i? · associational · r?

The brief attributes this comparison to an Urban Institute report on reshaping Parent PLUS loans, reporting that "Twenty percent of Black Parent PLUS borrowers default versus only 5% of White parent borrowers." It notes overall Parent PLUS default rates are lower than student loan default rates, but Black PLUS borrowers' rates remain disproportionately high.

"Twenty percent of Black Parent PLUS borrowers default versus only 5% of White parent borrowers."

Discussion¶

Learner Variables¶

• Race and Ethnicity — predictor: outcomes differ by group: a gap reflecting circumstances and treatment, not a cause

Related Claims¶

• As of May 2025, 5.3 million borrowers were in default and another 4 million were in severe delinquency — related
• Black parent borrowers struggle more with repayment and sacrifice retirement savings more than White parent borrowers — related
• Parent PLUS loans take up a larger share of typical Black family income than of typical White family income — related
• Black parents take out Parent PLUS loans at a higher rate than any other racial or ethnic group, and low-income Black PLUS borrowing is growing — related
• Black students default on federal student loans at far higher rates than White peers even within the same income group — related
• The 2011 tightening of Parent PLUS credit standards sharply reduced PLUS access at HBCUs and cost them about $168 million — related
• Black borrowers, and Black women in particular, are less likely to receive family or financial help with college costs or loan payments — related
• HBCU enrollment continued to decline in 2013-14 despite the partial rebound in PLUS loans — related