ERIC Number: ED363175
Record Type: RIE
Publication Date: 1993-Sep
Debt Burden: The Next Generation. Final Report.
This report presents an analysis of the debt levels and debt burdens of recent 4-year college graduates, based on student-reported data from five national surveys taken over the period 1977 to 1990. Report sections first describe the data and methodology of the study; second, present these findings and identify specific sub-groups most likely to exhibit high debt burdens; third, investigate the characteristics of non-working graduates with debt to determine if they are at risk for unmanageable debt burdens; fourth, assess the effect of alternative repayment assumptions on debt burden; and fifth, summarize the key debt burden findings and identify the subgroups of borrowers with potentially high debt burdens. Major findings include the following: (1) in 1986, over 50 percent of 4-year college graduates were indebted, dropping to 45.5 percent in 1990; (2) the median debt level in 1990 was $7,000, up from $2,000 in 1977; (3) the median debt burden (ratio of repayments to income) among graduates was highest in 1977 (5.2 percent), falling to 4.7 percent in 1990; and (4) under constant loan repayment assumptions, median debt burden has risen from 3.2 percent in 1977 to 4.7 percent in 1990. Overall, the report concludes that most college students are not overly burdened by their educational loans, except those who work at extremely low-paying jobs. The appendix contains data tables showing debt burden by bachelor's degree recipients and major fields and occupations. (GLR)
Publication Type: Reports - Evaluative
Education Level: N/A
Sponsor: Office of Policy and Planning (ED), Washington, DC.
Authoring Institution: Westat, Inc., Rockville, MD.