Student Loan Debt Statistics - What Everybody Ought to Know
Its no secret that the debt of the average American citizen is rising. Wages are being outpaced by growing inflation and with the possibility of a recession, things aren’t looking any better. Among the people affected the most are students. Below are statistics about student debt and loans that everyone should know, whether they’ve been to college or not.
Today, more than ever before, more students are borrowing to cover their college expenses. By the time they graduate, nearly two-thirds of students at four-year colleges and universities have student loan debt (66% in 2004). In 1993, less than one-half of four-year graduates had student loans, compare that to 2004 when over 60% of graduates from public universities had student loans.
The students who are borrowing are also borrowing more. Over the past decade, debt levels for graduating seniors with student loans more than doubled from $9,250 to $19,200 – an increase of 108% which is 58% after inflation.
Parents of students are borrowing to help their children. In 2004, the parents of 15% of graduating seniors took out federal PLUS loans. Their average PLUS debt was $14k at public institutions and $21k at private institutions.
Students with Pell Grants (an indicator of a median family income) are more likely to have student loans, and they also, on average, borrow more than other students. Of Pell recipients who got their Bachelor’s degrees in 2004, 88% had student loans, compared to 52% of non-Pell recipients. Ten percent carried debt of $38k or more. The comparable figure for non-Pell recipients with loans was $32k.
A recent study by the National Center for Education Statistics shows that the average student loan debt is $10,000. The average cost of college increases is twice the rate of inflation. The College Board estimates that public school costs are about $13,000 a year for public and $28,000 per year for private schools.
To learn more about student debt and statistics, visit ProjectonStudentDebt.org. Also check out the full rundown of student loan and debt statistics.
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Hi.
I think maybe things might be a bit different over here in England. It’s been a while since I graduated from uni, but from what I remember, I took out 2 student loans and the interest was very very low (almost non-existent). Maybe things are different now, though - I don’t know.
I do, however, have a friend who attends Stanford University and I know she’s really struggling financially. She owes money and needs money so it’s like a double-edged sword.
I’m not sure what the solution is to the debt spiral ‘cos if older adults are in debt, then what hope is there for students?
Maybe financial re-education is the key, but lord knows if the government will do something about it.
take care…