STUDENT
PAST DUE
As tuition costs continue to rise and students take on more debt, some policy experts say another taxpayer bailout of a teetering government-subsidized program -- the massive student loan industry -- is all but certain.
LOAN DEBT
How much do
Americans borrow?
This should help you understand the big picture view of how student debt continues to grow exponentially. As well as explore the current problems we face today.
[AN AMERICAN STORY]
Of the $864B in outstanding student loan debt, approximately $85 billion is past due.
$902B
40%
in total outstanding student loan debt in the United States today.
20 million
of the borrowers are under the age of 30.
Americans attend college each year.
$864B
60%
of that 20 million 60% (11million) need to pull out loans in order to help cover costs for school.
Nearly 30% of college student who took out loans dropped out of school, up from fewer than a quarter of students a decade ago.
$150B is in private student loans which are not made or backed by the federal government
37
Amount Borrowed
Q1 for 2012
$15
(In Millions)
There are approximately 37 million student loan borrowers with outstanding student loans today. million (Source: Federal Reserve Board of New York )
30%
in outstanding federal loan debt .
Two out of five student loan borrows are delinquent at some point in the first five years .)
$12 $9
Age Groups
$6
Over 60 group 50-59 group
$3
40-49 group
$0
Under 30 age group
30-39 group
25%
10.6%
4.2%
2.2
.5%
As of Quarter 1 in 2012, the average student loan balance for all age groups is $24,301. About one-quarter of borrowers owe more than $28,000; 10% of borrowers owe more than $54,000; 3% owe more than $100,000; and less than 1%, or 167,000 people, owe more than $200,000. (Source: FRBNY)
Why do they struggle?
50%
of those under 35 have more than $5000 in personal debt.
50% of 25-34 year-olds say they’re unemployed or under-employed.
80%
40%
80% say it has become harder to make ends meet over the past four years.
Who Borrows?
Among All 2007-08 Bachelor’s Degree Receipents
Among All 2007-08 Associate’s Degree Receipents
98% - of associate’s degree recipients at private for-profit institutions borrowed. 38% - of associate’s degree recipients at public institutions borrowed 30% - of certificate recipients at public institutions borrowed. 90% - of certificate recipients at private for-profit institutions borrowed.
62% - at public four - year institutions borrowed. 66% - graduated with some education debt 72% - at private nonprofit four - year institutions borrowed 96% - at private for-profit institutions borrowed
(Student Characteristics)
Student loans only
Grants or any other aid with student loans
Among All 2007-08 Who Earned Graduate Degrees
Grants or any other aid except student loans
5% - had borrowed between $60,000 and $79,999. 7% - had borrowed between $80,000 or more for graduate school. 14% - had undergraduate debt but no graduate school debt. 26% - had no education debt at all.
UNDERGRADUATES IN PRIVATE NONPROFIT 4-YEAR INSTITUTIONS
No financial aid
All undergraduates Total Attendance pattern Full-time/full-year Part-time/part-year Dependency status Dependent Independent Dependent student income Less than $30,000 $30,000–105,999 $106,000 or more Independent student income Less than $20,000 $20,000 or more Full-time/full-year undergraduates Total Dependency status Dependent Independent Dependent student income Less than $30,000 $30,000–105,999 $106,000 or more Independent student income Less than $20,000 $20,000 or more
0%
20%
40%
60%
80%
100%
Percentage distribution receiving various types of financial aid packages, by student characteristics: 2011–12
There’s Hope A college degree does increase an individuals potential for earnings: In 2010 people ages 25-34 with bachelor’s earned 114% more than did those without high school diplomas.
50%
College graduates earned 50% more than did young adults who completed only high school, and 22 percent more than did those with associate degrees.
The median income for young adults with a bachelor's degree was $45,000, and with an associate degree, $37,000.
$45,000 $37,000 Designed by Charles Duval