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ERIC Number: ED524675
Record Type: Non-Journal
Publication Date: 2011-Oct
Pages: 21
Abstractor: ERIC
Reference Count: 9
Borrowing at the Maximum: Undergraduate Stafford Loan Borrowers in 2007-08. Stats in Brief. NCES 2012-161
Wei, Christina Chang; Skomsvold, Paul
National Center for Education Statistics
Using data from the 2007-08 National Postsecondary Student Aid Study (NPSAS:08), this Statistics in Brief examines the extent to which undergraduate students borrow the maximum possible within the limits of the Stafford loan program (the program maximum) and their own financial need and student budgets (the individual maximum). Students who borrowed the maximum allowed based upon the lesser of their individual eligibility or the Stafford loan program maximum are referred to as those who "borrowed at their individual maximum." The characteristics of students borrowing at their individual maximum and the use of additional sources of financing by these students are addressed. The Brief also includes a description of how borrowing at the program maximum level changed between 1989-90 and 2007-08. Key findings include: (1) Among undergraduates who took out a subsidized Stafford loan between 1989-90 and 2007-08, the percentage of those borrowing the program maximum immediately decreased each time Stafford loan limits were raised, but as time went by it grew again; (2) In 2007-08, about two-thirds (66 percent) of subsidized Stafford loan borrowers took out their individual maximum in subsidized Stafford loans, as limited by the lesser of their financial need and the program maximum. About 6 in 10 (59 percent) of those who took out any Stafford loans (subsidized and unsubsidized combined) borrowed the most they could, as limited by the lesser of their total price of attendance and the program maximum; (3) Differences in the use of other types of loans (such as private loans and Parent PLUS loans) were greater between those who took out a Stafford loan and those who did not, than between borrowers who took out the maximum allowed and those who took out less. About 30-31 percent of those who took out a Stafford loan also took out a private loan, compared with 6 percent of those who did not take out any Stafford loans. Among dependent students, about 16-18 percent of Stafford loan borrowers had parents who took out a Parent PLUS loan, compared with 0.8 percent of dependent undergraduates who did not take out any Stafford loans; and (4) In terms of work intensity, the percentage of students who worked full time while enrolled was lowest among Stafford loan borrowers who took out the maximum amount (26 percent), compared with those who took out less than the maximum (33 percent) and those who did not borrow (37 percent). (Contains 5 figures, 4 figures and 9 footnotes.)
National Center for Education Statistics. Available from: ED Pubs. P.O. Box 1398, Jessup, MD 20794-1398. Tel: 877-433-7827; Web site:
Publication Type: Numerical/Quantitative Data; Reports - Evaluative
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: National Center for Education Statistics (ED)
Identifiers - Laws, Policies, & Programs: Stafford Student Loan Program
IES Funded: Yes