Assets and liabilities, race/ethnicity, and children's college education

This study examines the extent to which household assets and liabilities are related to disparities in children's college attendance and college graduation among White, Black, and Hispanic families. Results indicate that, after household assets are considered, a substantial portion of the Black–White gap in college attendance and college graduation disappears, and a small portion of the Hispanic–White gap in college graduation also disappears. Separate analyses of children from each racial/ethnic group further indicate that family income and financial assets are related to White children's college attendance and graduation, but nonfinancial assets and unsecured debt are associated with college attendance and graduation among Black and Hispanic children. Policy implications are considered.

► Assets account for a large portion of the Black–White gap in college education.
► Assets account for a small portion of the Hispanic–White gap in college education.
► Financial assets are positively related to White children's college education.
► Nonfinancial assets are positively linked to minority children's college education.
► Unsecured debt is negatively related to college education of minority children.