ERIC Number: ED446672
Record Type: RIE
Publication Date: 2000-Nov
Debt Burden Four Years after College. Statistical Analysis Report. Postsecondary Education Descriptive Analysis Reports.
Choy, Susan P.
This study examines the debt of 1992-93 bachelor's degree recipients in light of their financial circumstances in 1997, approximately 4 years after they earned their degrees. First, it reviews the amount they borrowed as undergraduates, including amounts borrowed through student loan programs, from parents, and from other private sources. It also describes any additional borrowing by those who had enrolled in a graduate degree program. Next, it examines the progress that borrowers had made in repaying their loans by 1997. Finally, the study describes their debt burden by examining the relationship between student loan payments and income and by searching for other indications of the impact of borrowing. Borrowers at various levels are compared to nonborrowers in terms of their expenditures for certain major items such as rent or a mortgage, a car, and credit card purchases, and their specific lifestyle choices such as family formation, buying a home or car, and savings. The analysis uses data collected through the 1992-93 Baccalaureate and Beyond Longitudinal Study and two follow-ups conducted in 1994 and 1997. Conclusions show that about one-half of all 1992-93 bachelor's degree recipients borrowed to help pay for their undergraduate education, and about one-half of those that went on to graduate school also borrowed. By 1997, 62% of the 1992-93 bachelor's degree recipients were debt free. Among those with no further enrollment after their bachelor's degree, those who still had debt in 1997 owed and average of $7,100, and were making loan payments averaging $151 per month. Eighty-eight percent were employed full-time, earning an average of $35,300. Overall, borrowing does not appear to affect major lifestyle choices, purchases, or the propensity to save. Contains 21 tables, 6 figures, and 14 references. (EMS)
Descriptors: Bachelors Degrees, Debt (Financial), Economic Impact, Educational Finance, Expenditures, Higher Education, Income, Loan Repayment, Money Management, Paying for College, Student Loan Programs, Tables (Data)
ED Pubs, P.O. Box 1398, Jessup, MD 20794-1398. Tel: 877-433-7827 (Toll Free).
Publication Type: Numerical/Quantitative Data; Reports - Descriptive
Education Level: N/A
Authoring Institution: National Center for Education Statistics (ED), Washington, DC.; MPR Associates, Berkeley, CA.