AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Understanding Students’ Expected Earnings Beliefs after College at an HBCU
AEA Papers and Proceedings
(pp. 412–416)
Abstract
Black borrowers tend to have higher student loan debt and worse financial outcomes than other racial groups, underscoring the importance of understanding how Black borrowers account for their ability to repay loans. This paper examines students’ baseline earnings beliefs as a precursor to a forthcoming intervention at a Historically Black College/University (HBCU). We administered a survey to compare students’ expected earnings to observed earnings data across majors. On average, respondents overestimated their expected earnings. These largely inaccurate beliefs could lead to suboptimal borrowing decisions, motivating the need for an intervention that will provide students with accurate and timely earnings information.Citation
Daniels, Gerald, Damon Jones, Lesley J. Turner, and Brianna Youngblood. 2026. "Understanding Students’ Expected Earnings Beliefs after College at an HBCU." AEA Papers and Proceedings 116: 412–416. DOI: 10.1257/pandp.20261082Additional Materials
JEL Classification
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
- I23 Higher Education; Research Institutions
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J31 Wage Level and Structure; Wage Differentials