In 2006, TG estimated that 47,000 bachelor's degrees would be lost in Texas due to financial barriers experienced by college-qualified high school graduates from the class of 2004. With more current data, TG now estimates that the number will be 52,800. "Digging Deeper" explores how students who enroll in college continue to experience barriers to degree attainment. The paper focuses on how debt, and the fear of borrowing, influence student decisions that, in turn, alter students' odds of graduating. Financial obstacles prompt many students in Texas to employ strategies such as delaying enrollment, attending school part time, and working long hours off campus. While lowering out-of-pocket expenses, these strategies erode the quality of student life, imposing distractions that impede academic progress and degree attainment. Key findings include: (1) Due to high community college enrollment in Texas, borrower rates--the percentage of students who borrow federal loans--in the state are lower than those found nationally: 33 percent vs. 39 percent; (2) Borrower rates tend to be higher at four-year colleges, where loans may facilitate full-time enrollment and reduce the need to work full time while in school; (3) Student loans are likely to remain a prominent instrument for paying for college in Texas; and (4) The risk associated with borrowing (e.g., default, harmful credit rating, potential wage garnishment) can be mitigated by (1) providing students in school with sound loan counseling which emphasizes the importance of attending full time; (2) improving student financial literacy (including modules on frugal living, career counseling, and sound financial management); and (3) keeping student borrowers aware of their repayment options and responsibilities after they leave school. A bibliography is included. (Contains 13 figures, 2 tables, 34 endnotes.) [For related report, "Digging Deeper: Making Sense of Student Loan Debt in Texas. Research Report," see ED542011.]