Student Loan Facts
With loans being the primary source of federal aid today, students of all types need debt management and financial literacy skills. Here are some fast facts about students and debt today.
Undergraduate Students
- – Number of undergraduate students attending 4-year schools in 2007: 8,986,150
Source: National Center for Education Statistics - – Between 2007 and 2018, undergraduate enrollment in 4-year colleges is expected to increase by 12%, while enrollment in 2-year colleges is expected to increase by 13%.
Source: National Center for Education Statistics - – In each year between 2000 – 01 and 2006 – 07, an estimated 60% of bachelor’s degree recipients borrowed to fund their education. Average debt per borrower rose 18%, from $19,300 to $22,700 in 2007 dollars over this time period. Average debt per bachelor’s degree recipient increased from $10,600 to $12,400.
Source: The College Board (Trends in Student Aid – 2008) - – In 2008, 84% of undergraduates had at least 1 credit card, up from 76% in 2004, the last time the study was conducted. The average number of cards has grown to 4.6, and half of college students had 4 or more cards.
- – Undergraduates are carrying record-high credit card balances. The average (mean) balance grew to $3,173, the highest in the years the study has been conducted. Median debt grew from 2004's $946 to $1,645. 21% of undergraduates had balances of between $3,000 and $7,000, also up from the last study.
Source: Sallie Mae - – In 2007 – 2008, lenders provided about $17 billion in private loans, a 592% increase from a decade earlier.
Source: The College Board (Trends in Student Aid – 2008) - – Nonfederal student loans grew rapidly for most of the decade, increasing from 7% of education loans in 1997 – 98 to 23% in 2005 – 06. However, the growth in these loans, which carry no subsidy and generally have less favorable terms than federal loans, slowed in 2006 – 07. Private loan volume declined slightly in inflation-adjusted dollars in 2007 – 08, but still represents 23% of the total loan volume.
Source: The College Board (Trends in Student Aid – 2008) - – In the 2007 – 2008 year, proprietary schools at all levels and private (non-profit) 4-year schools had disproportionate numbers of students taking out private loans.
- – Students attending proprietary schools composed about 9% of total undergraduates, but 27% of those taking out private loans.
- – Students attending private 4-year schools composed about 13% of total undergraduates but 22% of those taking out private loans.
- – In contrast, the percentage of private loan borrowers who attend public 4-year schools (28%) is basically the same as the percentage of undergraduates overall who attend public 4-year schools (29%).
Source: Project on Student Debt
Graduate Students
- – The following table shows the percentage borrowing and average amount of cumulative debt per borrower among graduate students according to degree program:
Debt Burdens of Graduate Students by Degree Program Graduate Education Debt All Education Debt
(Grad & Undergrad)Graduate & Professional Degree Programs Percent Borrowing Cumulative Debt Percent Borrowing Cumulative Debt Total 56.40% $40,297 69.60% $47,503 Master’s Degree 55.20% $31,031 69.40% $40,208 Doctoral Degree 45.80% $57,860 56.30% $58,967 Professional Degree 86.20% $87,308 87.90% $98,711 Master of Business Administration (MBA) 55.50% $31,927 68.90% $41,676 Master of Social Work (MSW) 72.30% $35,516 77.70% $49,017 Master of Science (MS) 49.80% $30,684 63.50% $40,362 Master of Arts (MA) 60.80% $29,975 73.70% $40,500 PhD 35.40% $44,995 48.00% $45,455 EdD 65.10% $43,812 73.30% $44,880 Law (LLB or JD) 88.60% $80,081 88.60% $92,937 Medicine or Osteopathic Medicine 81.90% $119,424 83.20% $127,272 Pharmacy (PharmD) 82.20% $63,412 85.00% $81,838 Source: Finaid.org (data is from NPSAS 2007 – 08)
- – In 2006, 92% of graduate students have at least 1 credit card. This is a 4% decrease from the 96% who had credit cards in 2003.
Source: Nellie Mae - – The average outstanding balance on graduate student credit cards is $8,612, an increase of 10% from the 2003 average of $7,831.
Source: Nellie Mae
Minority Students
| Group | % Who Borrowed 1992 – 1993 |
% Who Borrowed 1999 – 2000 |
Average Debt 1992 – 1993 |
Average Debt 1999 – 2000 |
|---|---|---|---|---|
| American Indian | 66.2 | 78.4 | $13,300 | $16,800 |
| Asian | 42.7 | 60.5 | $13,500 | $17,900 |
| Black | 64.1 | 79.8 | $11,400 | $19,800 |
| White | 47.8 | 63.7 | $12,300 | $19,700 |
| Hispanic | 60.7 | 70.6 | $9,500 | $17,000 |
Source: National Center for Education Statistics (table 2)
- – Number of undergraduate Hispanic students in 2007: 1,915,900
Source: National Center for Education Statistics - – The largest and fastest-growing minority group was Hispanics, who reached 46.9 million in 2008, up by 3.2% from 2007. In 2008, nearly 1 in 6 U.S. residents was Hispanic
- – 34% of Hispanics are under 18 compared with 24% of the total U.S. population (2008)
Source: Census - – By 2014, Hispanic students will account for 20.5% of all high school graduates.
Source: The Western Interstate Commission for Higher Education - – In 2007, Hispanic students accounted for 8.7% of students enrolled at 4-year institutions. The majority of Hispanics (51%) attend 2-year institutions.
Source: National Center for Education Statistics
The Non-traditional Student
According to a 1999 – 2000 study:
- – About 48% of employees who study received some type of financial aid, averaging about $3,000 per recipient
- – About 40% of employees who study received grants, averaging about $1,500, and 12% received loans, averaging about $5,600
- – About 23% of employees who study received aid from their employers, averaging about $1,200
- – Those who were enrolled in bachelor’s degree programs were the most likely to receive employer aid (33% received an average of $2,200 in employer aid)
Source: National Center for Education Statistics
- – According to a recent study (2008) by the Institute for Corporate Productivity (i4cp), 81% of organizations provide tuition assistance programs
Source: The Institute for Corporate Productivity - – A 2007 study of large U.S. employers by Mercer Human Resource Consulting reported that 87% offered some type of educational assistance to employees. When small- to medium-sized employers are included, the share drops to about 35%, according to a 2004 study by the Council for Adult and Experiential Learning (CAEL).
Source: The Minnesota Private College Council, Fund and Research Foundation
American Student Assistance, a nonprofit organization, wants to help lighten the loan because on-time repayment is so important. When students pay back their loans on time, they take the first steps to building good credit, which is the key to a healthy financial future. Without good credit, they can’t buy a home or a car, or in some cases even get a job. If not managed properly, student loan debt can lead to bad credit, loss of eligibility for future federal aid, and possibly even wage garnishment or withholding of tax refunds.
We help student loan borrowers successfully manage their debt. We offer outreach and education, loan repayment counseling, budget planning, information on repayment options, and even help for borrowers who default on their loans.
For more information, please contact Allesandra Lanza at lanza@amsa.com or 617.728.4631.
Paul Combe
President and CEO
Biography
Paul Combe is the president and CEO of American Student Assistance. Paul came to ASA in May 1996 and has led the organization through a process of strategic change and renewal that refocused the organization and positioned it as a leader in higher education financing.
Throughout his tenure, Paul has been a strong advocate for Federal Family Education Loan guarantor agency reform and is a founding member and president of the National Association of Student Loan Administrators (NASLA). Under his direction, ASA refined its vision and mission to align with its public purpose of helping student loan borrowers manage higher education debt. Simply put, the organization has carved out a new role for the guarantor, one that centers its activities around proactively ensuring the financial “wellness” of the borrowers in its portfolio, rather than the traditional guarantor model of reinsurance and debt collection.
In February 2001, ASA entered into a Voluntary Flexible Agreement (VFA) with the Department of Education, focusing on student loan borrower financial “Wellness” and default prevention. Through the successful implementation of the VFA and Wellness initiatives, ASA has increased the number of loans in good standing in its portfolio, and achieved the second lowest cohort default rate of all guarantors.
Paul received his Bachelor of Arts and Master of Education Degrees from Framingham State College. He has spoken at numerous industry events and conferences, as well as spoken before members of Congress on making student debt more manageable.
To schedule an interview, please contact Allesandra Lanza at lanza@amsa.com or 617.728.4631.
Shelley Saunders
Vice President, Strategic Services
Biography
In her current role as American Student Assistance’s vice president of Strategic Services, Shelley Saunders serves as the organization’s primary contact for Congress, as well as for national organizations such as the American Council on Education, the American Association for State Colleges and Universities, the National Association of Student Loan Administrators (NASLA), and others. Her main focus is to educate the public policy making community on the positive results American Student Assistance has realized through its focus on student loan borrower financial Wellness.
In her 12-year career at American Student Assistance, Saunders has played an integral role in several of the organization’s global projects, including designing a new client-server based life-of-the-loan processing system and developing corporate strategy and tactics. She most recently held the position of vice president of Borrower Services.
Saunders has appeared on numerous Clear Channel radio broadcasts in the Washington, D.C. area. Her areas of expertise include the public purpose role of federal student loan administrators, as well as general facts about student loan origination and repayment.
To schedule an interview, please contact Allesandra Lanza at lanza@amsa.com or 617.728.4631.
Allesandra Lanza
Corporate Public Relations Manager
lanza@amsa.com
617.728.4631
Biography
In her current role, Allesandra Lanza oversees American Student Assistance’s media relations and corporate image. She has more than 10 years of experience at ASA, working with both student loan borrowers and the financial aid professionals who help them. She has:
- – answered students’ questions about their federal loans
- – conducted on-campus loan counseling sessions for students as they enter and exit school
- – and written communications for students about loan repayment, debt management, budgeting and more
Lanza is currently a member of the Eastern Association of Student Financial Aid Administrators. She has previously been a member of the Massachusetts Association of Student Financial Aid Administrators, serving as Newsletter Co-chair from 2002 to 2004. Lanza has a bachelor’s degree in Journalism from Boston University.
She has most recently appeared on Tufts University radio to promote American Student Assistance’s “Think About Tomorrow®” Tour, a fun and interactive on-campus event that educated college students on the benefits and responsibilities of student loans.
