J. Fredericks Volkwein Bruce P. Szelest Alberto F. Cabrera Michelle R. Napierski-Prancl Factors Associated with Student Loan Default Among Different Racial and Ethnic Groups Introduction This is the first study that uses a nationally repre- sentative data base of student loan borrowers to examine the similarities and differences among Whites, African Americans, and Hispanics. This is an important research and policy area because of the size of the loan default problem and the dominance of race as a correlate of loan repay- ment and default in other studies. The nation's student loan program is plagued by clashes among the competing values and goals of public sub- sidy, educational opportunity, cost effective investment, and institutional accountability {e.g., Hansen & Stampen, 1981; Volkwein & Szelest, 1995). This policy and value conflict remains unresolved (Heam, 1993) and is amplified by a relative lack of empirical evidence to validate the policies and claims advanced by the various financial aid stakeholders. For three decades, public investment in higher education has been di- rected at removing economic barriers to attend and to persist in college. This commitment to educational opportunity produced growth in stu- This article is an enhanced version of research papers that were presented at the 1994 annual meetings of ASHE in Tucson, AZ, NEAIR in Baltimore MD, and SAIR in San Antonio, TX, where the paper won the SAIR Best Paper Award. In addition, the paper was presented at the 1995 AIR Forum in Boston. MA. The authors are deeply grateful to the following scholars for their comments and suggestions on earlier drafts: James Heam, Mildred Garcia, Judy Grace. Michael Nettles, Michael divas, Ronald Red Owl, and Douglas Windham. J. Fredericks Volkwein is director of institutional research and associate professor of educational administration and policy studies, Alberto F. Cabrera is associate professor of educational administration and policy studies. Bruce P. Szelest is associate for insti- tutional research, and Michelle R. Napierski-Prancl is a doctoral student at the State University of New York at Albany. The Journal of Higher Education. Vol. 69. No. 2 (March/April 1998) Copyright © 1998 by Ohio State University Press