> Posted by Center Staff
It’s common knowledge in the United States that the student loan situation is bad and getting worse, but what are the actual statistics and how severe is this trend? Like other kinds of debt, student debt has innumerable implications for young borrowers, as well as for the country’s recovering economy.
A new report from the New America Foundation inspects undergraduate student loan debt data from the past ten years, compiling borrower rates and amounts, in aggregate and by institution and degree type. The report, The Student Debt Review, draws from the National Postsecondary Student Aid Studies, a national survey series of student financial aid. Here are some of the report’s main findings:
- More students are indebted. Across all institution and degree types, the percentage of graduates with debt increased from 54 percent in 2004 to 62 percent in 2012. In 2004 there were 1.6 million graduates with debt. By 2012 there were 2.4 million.
- They owe more. Total student loan debt increased by an average of $3,300 between 2008 and 2012 after a period of four years in which it changed only marginally (2004-2008).
- For-profit colleges are a sore spot. Student debt is increasing especially quickly for bachelor’s degree recipients at private for-profit colleges, who now graduate with an average debt of $40,000 and pay $153 more each month than those graduating with bachelor’s degrees at public colleges. A very high proportion of the bachelor’s degree graduates at private for-profit colleges have borrowed (87 percent), compared to public colleges (64 percent).
Average total debt for bachelor’s borrowers in 2012 was $29,400, and for associates and certificates graduates $17,200 and $13,300. The average annual income for Americans between 25 and 34 years of age is $37,532.
For more on student loan debt, read the New America Foundation report.
Image credit: New America Foundation
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