A Case of Predatory Inclusion at Baylor University - How the Baptist Institution Steered Low-Income Families to Hazardous Debt as it Sought National Prominence

Oct 15, 2026

Report analyzing Baylor University officials’ conduct after a Wall Street Journal exposé dated October 13, 2021. It describes how the university allegedly pushed low- and lower-middle-income families toward large federal Parent PLUS borrowing to cover rising tuition, despite limitations that make repayment unlikely. Using U.S. Department of Education data, the report highlights low repayment rates and discusses risks for cash-strapped families, including debt collection and limited discharge options. The narrative explains how institutional ambitions and required funding shaped aggressive recruiting and financial steering decisions.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages33

Reading Time1 h 23 min

AccessFree to download

Introduction

Becoming a “Modern University”

Financial Aid Leveraging Comes to Baylor

Playing the Rankings Game

A “New Era for Baylor”

Losing Its “Moral Compass”

An Enrollment Management Scandal

Conclusion

June 2025 A Case of Predatory Inclusion at Baylor University How the Baptist Institution Steered LowIncome Families to Hazardous Debt as it Sought National Prominence Stephen Burd Education Policy & Higher Education Last edited on June 23, 2025 at 9:08 p.m. EDT Acknowledgments We would like to thank the Joyce Foundation for its generous support of this work. The views expressed in this report are those of its author and do not necessarily represent the views of the Joyce Foundation or its officers or employees. The author would also like to thank Rachel Fishman and Sabrina Detlef for their keen editing skills. He would also thank Katherine Portnoy, Amanda Dean, and Natalya Brill for their communications, production, and data visualization support. [newamerica.org/education-policy/reports/how-baylor-university-steered-low-income-families-to-debt/ 2](newamerica.org/education-policy/reports/how-baylor-university-steered-low-income-families-to-debt/ 2) About the Author(s) Stephen Burd is a senior writer and editor with the Education Policy program at New America, where he has helped shape the organization’s work on higher education policy and on student financial aid issues. About New America We are dedicated to renewing the promise of America by continuing the quest to realize our nation’s highest ideals, honestly confronting the challenges caused by rapid technological and social change, and seizing the opportunities those changes create. About Education Policy We use original research and policy analysis to help solve the nation’s critical education problems, crafting objective analyses and suggesting new ideas for policymakers, educators, and the public at large. About Higher Education We are researchers, writers, and advocates from diverse backgrounds who shed light on the thorniest issues in higher education and develop studentcentered federal policy recommendations. [newamerica.org/education-policy/reports/how-baylor-university-steered-low-income-families-to-debt/ 3](newamerica.org/education-policy/reports/how-baylor-university-steered-low-income-families-to-debt/ 3) Contents Introduction 5 Becoming a “Modern University” 10 Financial Aid Leveraging Comes to Baylor 12 Baylor on the Rise? 14 Playing the Rankings Game 17 A “New Era for Baylor” 18 Losing Its “Moral Compass” 21 An Enrollment Management Scandal 22 Conclusion 25 [newamerica.org/education-policy/reports/how-baylor-university-steered-low-income-families-to-debt/ 4](newamerica.org/education-policy/reports/how-baylor-university-steered-low-income-families-to-debt/ 4) Introduction On October 13, 2021, Baylor University oﬃcials woke up to a public-relations nightmare: an exposé in The Wall Street Journal entitled “How Baylor Steered Lower-Income Parents to Debt They Couldn’tAﬀord.”1 The newspaper revealed that the world’s largest Baptist university had been pushing low-and lower-middle-income families to borrow substantial amounts of federal Parent PLUS loans “to cover rising tuition,” leaving them“with debt they can’t repay.” U.S. Department of Education data showed that after two years in repayment,“only about a quarter of [all] Baylor parents paid down any of what they originally borrowed.”2 The university was, in other words, knowingly putting these cash-strapped families in harm’s way. Congress created the Parent PLUS loan program in 1980 to help middle-and upper-middle-income students and their families aﬀord expensive colleges.3 For low-income families with few assets, taking out PLUS loans is an extremely risky proposition. Unlike federal student loans, which are strictly limited to $5,500 to $7,500 per year for most students under the age of 24, PLUS loans allow parents to borrow up to the full cost of attendance, which includes not only tuition and fees but living expenses as well, regardless of their income. To obtain the loan, a parent need only pass an adverse credit history che

FAQs

What triggered the public scrutiny of Baylor University?

On October 13, 2021, Baylor officials faced a public-relations crisis after a Wall Street Journal exposé reported that Baylor steered lower-income parents to debt they couldn’t afford.

Why are Parent PLUS loans considered especially risky for low-income families?

The report explains that Parent PLUS loans allow parents to borrow up to the full cost of attendance and rely on an adverse credit history check that does not assess repayment ability; the debt also generally cannot be discharged in bankruptcy and is subject to strong debt collection.

How does the report connect Baylor’s recruitment of low-income students to its use of PLUS loans?

The report states that Baylor aggressively recruited low-income students between 2010 and 2015 and then steered those families toward PLUS loans likely to be difficult to repay, linking these actions to the institution’s leaders’ outsized ambitions and funding needs.

Oct 15, 2026

Uploaded by Taylor Morgan