ERIC Number: ED263858
Record Type: Non-Journal
Publication Date: 1985-Oct
Reference Count: N/A
Student Debt Crisis: Are Students Incurring Excessive Debt? Program Report 85-13.
Hansen, W. Lee; Rhodes, Marilyn S.
Definitions of manageable college student debts are discussed and one definition is applied to California data, using the Student Expenses and Resources Survey. Definitions proposed by Daniere, Hartman, and Horch define manageable debt levels in terms of future income. A comparison of the three proposals shows the number of years of repayment required for accumulated debts of different amounts. For the analysis of California data, a manageable debt limit is defined as the maximum debt that can be repaid within the standard 10-year repayment period. Any debt in excess of $14,000 is designated as excessive, although the present maximum borrowing allowed under the Guaranteed Student Loan (GSL) program is $12,500. The analysis, which is restricted to seniors at four-year public and private colleges, considers average debt size, the distribution of debt size, borrowing patterns, and graduate and professional education debt. The data indicate that at most 3% of seniors with debt might on average experience repayment problems. The situation is most serious for independent students attending private colleges; perhaps as many as 9% of this group have unmanageable debts. However, slightly over half of students borrow and the average accumulated debt is well under half the GSL maximum. (SW)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: National Inst. of Education (ED), Washington, DC.
Authoring Institution: Wisconsin Center for Education Research, Madison.
Identifiers - Location: California