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ERIC Number: ED449715
Record Type: Non-Journal
Publication Date: 2000-Jun
Pages: 37
Abstractor: N/A
Reference Count: N/A
ISBN: N/A
ISSN: N/A
Student Debt Levels Continue To Rise. Stafford Indebtedness: 1999 Update. New Agenda Series[TM], Volume 2, Number 3.
Scherschel, Patricia M.
A study of the rate of growth in Stafford student loan debt levels compiled average indebtedness figures for graduate students, undergraduate students, proprietary students, and students enrolled in community colleges and other 2- and 3-year institutions. The study also attempted to develop payment stress indicators by tracking payment status data using reports from the USA Group loan serving portfolio. Stafford indebtedness has risen every year since 1995 for each of the four categories of students in the study. The rate of increase lessened in 1999 for graduate students and proprietary students but it increased for undergraduates and students attending community colleges and other 2- and 3-year schools. Cumulative Stafford indebtedness for graduate students who left school in the first 6 months of 1999 averaged $23,022, up 6.1% from 1998. The average cumulative Stafford balance for undergraduate students rose 3.4%, in 1999, to $9,805. Students attending community colleges and other 2- and 3-year colleges had the smallest total Stafford debt, but many of these students are also eligible for the Pell grant program. Projecting future growth rates is difficult, and a key factor is the presence of federal limits on how much students can borrow each year. At present, the majority of community college, proprietary, and undergraduate students owe less than $10,000 when they leave school, but this group is shrinking. The study of payment stress indicates that student loan repayment burdens appear to be manageable for most borrowers, at least for the time being. (SLD)
Publication Type: Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: USA Group, Inc., Indianapolis, IN.
Identifiers - Laws, Policies, & Programs: Stafford Student Loan Program