1 / 20

Student Debt

Student Debt. SHEEO Professional Development Conference Seattle, August 2005. Susan Choy MPR Associates Berkeley, California schoy@mprinc.com. Why Student Debt Has Increased. Growth in tuition and fees has outpaced growth in median family income

urvi
Download Presentation

Student Debt

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Student Debt SHEEO Professional Development Conference Seattle, August 2005 Susan ChoyMPR AssociatesBerkeley, California schoy@mprinc.com

  2. Why Student Debt Has Increased • Growth in tuition and fees has outpaced growth in median family income • From 1993–94 to 2003–04, after adjusting for inflation • Tuition at public 4-year institutions increased by 44% • Tuition at private institutions increased by 35% • Median family income (ages 45-54) increased by 6% • 1992 reauthorization of the Higher Education Act • Expanded eligibility for student aid • Raised loan limits • Introduced unsubsidized loans for all students, regardless of need

  3. Growth in Student Loan Volume(Constant 2003 Dollars) Source: The College Board, Trends in Student Aid, 2004

  4. Percent with Student LoansUndergraduates 1999-2000 2003-04 Percent 100 80 56 60 50 45 40 35 40 29 20 12 7 0 Total Public 2-year Public 4-year Private 4-year

  5. Average Amount in Student LoansUndergraduate Borrowers 1999-2000 2003-04 Average amount $10,000 8,000 6,900 6,200 5,800 5,600 6,000 5,100 4,800 3,600 4,000 3,300 2,000 0 Total Public 2-year Public 4-year Private 4-year

  6. Percent with Student Loans, by IncomeFull-Time, Full-Year Undergraduates 1999-2000 2003-04 Total Dependent students Less than $20,000 $20,000-39,999 $40,000-59,999 $60,000-79,999 $80,000-99,999 $100,000 or more Independent students 45% 45% 51% 49% 47% 42% 29% 49% 50% 46% 53% 49% 48% 48% 38% 57%

  7. Average Amount in Student Loans, by IncomeFull-Time, Full-Year Undergraduate Borrowers 1999-2000 2003-04 % Change Total Dependent students Less than $20,000 $20,000-39,999 $40,000-59,999 $60,000-79,999 $80,000-99,999 $100,000 or more Independent students $5,400 4,700 4,900 4,700 4,900 5,100 5,200 6,800 $6,200 5,200 5,400 5,700 5,700 5,800 5,800 7,500 15 11 10 21 16 14 12 10

  8. 1999-2000 2003-04 Percent with Student LoansGraduate and Professional Students Percent 100 78 76 80 60 41 40 31 27 22 20 0 Master’s Doctoral Professional

  9. 1999-2000 2003-04 Average Amount with Student LoansGraduate and Professional Student Borrowers Average amount $30,000 26,400 25,000 20,000 20,000 17,800 13,600 13,200 15,000 12,400 10,000 5,000 0 Master’s Doctoral Professional

  10. Grants vs. Loans Percent Share of Total Aid, 1993-94 to 2003-04 Source: The College Board, Trends in Student Aid, 2004

  11. Paying for College: 4-year Institutions(Constant 1999 Dollars)Full-time Dependent Undergraduates Family Grants Loans Public 4-year Private not-for-profit 4-year Average amount 24,400* $25,000 4,800* 19,400 20,000 2,000 6,800* 4,000 15,000 12,400* 10,000 2,500* 900 10,000 1,900* 1,200 13,400 12,800 5,000 8,000 8,000 0 1989-90 1999-2000 1989-90 1999-2000 *Represents statistically significant change from 1989-90.

  12. Paying for College: <4-year Institutions(Constant 1999 Dollars)Full-time Dependent Undergraduates Family Grants Loans Public 2-year Proprietary, <4-year Average amount $25,000 20,000 16,000 14,700 15,000 3,100 5,400* 1,700 10,000 8,500* 1,800 500* 7,300 200 1,100* 600 10,000 5,000 8,800* 7,000* 6,500 0 1989-90 1999-2000 1989-90 1999-2000 *Represents statistically significant change from 1989-90.

  13. Percentage of Bachelor’s Degree Recipients Who Borrowed Percent 100 80 65 60 49 40 20 0 1992-93 1999-2000

  14. Average Amount Borrowed Bachelor’s Degree Recipient Borrowers (Constant 1999 Dollars) Amount borrowed $25,000 19,300 20,000 15,000 12,100 10,000 5,000 0 1992-93 1999-2000

  15. Average Monthly Payment(Constant 2001 Dollars) Monthly payment $250 210 200 160 150 100 50 0 1994 2001

  16. Average Annual Salary(Constant 2001 Dollars) Annual salary $40,000 34,100 28,300 30,000 20,000 10,000 0 1994 2001

  17. Percentage Distribution of Loan Repayers by Debt Burden Median: 6.7 Median: 6.9 Percent 50 40 36 33 31 28 30 20 20 16 12 9 9 7 10 0 <5% 5-8% 9-12% 13-16% 17%+ <5% 5-8% 9-12% 13-16% 17%+ 1994 2001

  18. Summary • Student borrowing continues to increase, especially unsubsidized Stafford loans and alternative loans • Largest increases in percent borrowing have been at the high income levels, while the largest increases in average amount borrowed have been at the middle-income levels • Grant aid has increased, but loans once again account for a greater percentage of total aid

  19. Summary (continued) • Price increases have been absorbed by increased grants and loans rather than current family outlays • For bachelor’s degree recipients, borrowing has increased, but salaries have increased and interest rates have declined, leaving debt burden relatively unchanged

  20. For More Information L. Berkner et al., 2003-04 National Postsecondary Student Aid Study (NPSAS:2004): Student Financial Aid Estimates for 2004 (NCES 2005-158) http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2005158 L. Berkner et al., 2003-04 National Postsecondary Aid Study (NPSAS:2004): Undergraduate Financial Aid Estimates for 2003-04 by Type of Institution (NCES 2005-163) http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2005163 Choy, S. and Li, X., Debt Burden: A Comparison of 1992-93 and 1999-2000 Bachelor’s Degree Recipients a Year After Graduating (NCES 2005-170) http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2005170 Choy, S. Paying for College (NCES 2004-075) http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2004075 The College Board, Trends in Student Aid,2004

More Related