ERIC Number: ED228939
Record Type: Non-Journal
Publication Date: 1983-Jan-31
Reference Count: N/A
The Role of Educational Debt in Consumers' Total Debt Structure.
Purdue Univ., Lafayette, IN. Credit Research Center.
The extent to which an individual's total debt capacity is absorbed at the point of college graduation is examined, along with the graduate's self-imposed debt limits and the debt limits established by the marketplace. The findings are based on the a survey of creditors and the consumers who had student loans. Attention is also directed to data revealing the debt-use patterns of consumers who filed for personal bankruptcy; levels of cumulative student borrowing and starting salaries in various professions in 1981; the proportion of the debt capacity that will have been absorbed by student borrowing; college costs, borrowing patterns, starting salaries, and debt burdens projected to 1988; and implications of borrowing for postsecondary education and consequent consumption patterns of college graduates. Conclusions include the following: (1) there are limits set on the aggregate amounts of debts that consumers may assume; (2) consumers most likely to be affected by debt limits are those who plan to enter the poorly-paid vocations, such as nursing or teaching; and (3) in the future there may be a lowering of aggregate credit limits and an increase in the average size of student loans owed following graduation. A questionnaire is appended. (SW)
Publication Type: Reports - Research; Tests/Questionnaires
Education Level: N/A
Sponsor: National Commission on Student Financial Assistance, Washington, DC.
Authoring Institution: Purdue Univ., Lafayette, IN. Credit Research Center.