The Foreclosure Crisis, Parent PLUS Loan Approvals, and Minority College Enrollment: Is There a Link?
LaTanya Brown, Daren A. Conrad

Abstract
The foreclosure crisis has not only pushed millions of families out of their homes but also created long-term strain on a household’s financial standing. This financial strain makes it difficult for the head of household to receive additional credit to pursue opportunities for their family and for themselves. This paper explored, through trend and data analysis, the relationship between the foreclosure crisis and the Parent PLUS loans approval rates and the extent to which college enrollment for minorities has been impacted as a result. While there is research on the causes and effects of mortgage default on various demographic groups and the impact on school age children, this paper will contribute to said research by understanding the causal effects on the approval of student loans. The authors found that an increase in foreclosure negatively impacted Parent PLUS loan approval rates along with college enrollment of students attending private institutions.

Full Text: PDF