USA (By Aissatou Sidime, Excelencia) November 18, 2005 — Latino students get less financial aid for college than any other group, largely caused by inadequate information and an aversion to debt, according to a study released Wednesday.

With education still a key avenue into higher-paying careers, that trend in Latino college funding could hurt the Texas economy in the long run, advocates say.

Latino students received an average award of $6,253 in the 2003-04 school year, about $640 less than the national average and about $1,400 less than Asian students, according to a study by Excelencia in Education and the Institute for Higher Education Policy.

Latinos also are more likely to end up in two-year colleges than other groups.

Researchers say the disparity comes from Latino students' having less knowledge about how to access financial aid and being afraid of taking on debt.

Many students don't know that some scholarships are only advertised by universities' financial aid offices, said Deborah Santiago, vice president of Excelencia in Education and co-author of the study. "If we had a better sense of those options, maybe we could get more of the aid opportunities that are going to other groups."

Most government aid programs prefer to dole out loans because they can be recycled as they are paid off, said Jane Caldwell, director of grants and special programs for the Texas Higher Education Coordinating Board, which administers $250 million in financial aid.

But Latino students are often reluctant to participate.

"They are very averse to taking out loans, and in the modern world, the majority of aid is in the form of loans," Caldwell said.

First-generation college students who might be willing to go into debt for a college degree often face parents who don't realize that such a practice is commonplace.

"In many families there is a defensiveness when you mention applying for loans," said Diego Bernal, director of student aid at St. Philip's College. "That goes to philosophies at home of living off what you earn, not borrowing money, or the idea that they can't get credit, not realizing that credit isn't evaluated in student loan processing."

Thus, Latino students opt to attend two-year colleges on a pay-as-they-go basis more than other students, according to the study.

Many Latino students get into a cycle of working to pay for part-time classes, which limits the type of loans for which they are eligible, further hindering the aid they can get.

David Hinojosa, education staff attorney for the Mexican American Legal Defense and Educational Fund, said the disparity could be wiped out by improving the counseling that many Latino students get in high schools.

"They attend property-poor school districts that are under funded, and when you have limited funds, counselors are overwhelmed," Hinojosa said.

The long-term implications are significant, San Antonio college aid experts said.

Students are less likely to complete college when attending part time. Those who graduate with two-year degrees often earn less than those with four-year degrees.

Hinojosa said the disparity could affect the quality of the Texas work force in the long term. "It's going to mean a huge economic downturn for the greater state of Texas as it becomes more dependent on the Latino population in its work force," he said.

Excelencia's Santiago has called for an increase in bilingual marketing of aid programs to students and parents via Spanish-language media.

"Posting a sign on a school bulletin board won't do it," she said. "If parents aren't informed, they will constrain the choices made."