Increased reliance on student loans to finance higher education (HE) raises concerns about unequal access and repayment burdens. However, who borrows and what motivates students and parents to borrow remain unclear. A longitudinal survey tracked parents and students from high school into their early career to explore the effects of socioeconomic background and attitudes towards HE on taking out student loans in Japan. The findings reveal that, first, families' economic circumstances are negatively associated with taking out student loans. Second, students, especially those from lower socioeconomic backgrounds, may choose a two-year rather than four-year institution to reduce debt. Third, students and their mothers differ in their motivations for borrowing: students' perceived risk of failing to graduate discourages them from borrowing money, whereas mothers attach more importance to the cost-benefit of student loans. These results have policy implications for alleviating debt burden and promoting equal access to HE.