Study Finds Higher Rates Of Student Loan Borrowing, Fewer In Repayment
"Students who completed an undergraduate program in 2007-8 were more likely to borrow money to pay for college but less likely be repaying those loans within a year of graduation compared with their counterparts who graduated in 1992-93 and 1999-2000, a new federal report shows," according to Inside Higher Ed. "The report, released Thursday, analyzes the borrowing and repayment trends of bachelor’s degree recipients within a year of graduation for three cohorts of students. The data were collected through the Baccalaureate and Beyond Longitudinal Study from the U.S. Education Department’s National Center for Education Statistics, which, like the rest of the federal government, returned to work on Thursday. The study found that the percentage of college graduates who borrowed for their undergraduate education rose in each successive cohort from 49 percent (1993) to 64 percent (2000) to 66 percent (2008). The average cumulative debt of graduates also increased in each successive cohort. The number of borrowers repaying their loans within a year of graduation dipped in 2009 to 60 percent, compared with 66 and 65 percent in the previous cohorts. At the same time, the percentage of graduates not in repayment but who still owed money on their student loans (due to either deferments, forbearances or default) rose."
NASFAA's "Financial Aid in the News" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.