Commentary

College Students In Hock

According to a new analysis of National Center for Education Statistics data by the Pew Research Center, graduates who received a bachelor's degree in 2008 borrowed 50% more than their counterparts who graduated in 1996, while graduates who earned an associate's degree or undergraduate certificate in 2008 borrowed more than twice what their counterparts in 1996 had borrowed. In 2008, 60% of all graduates had borrowed, compared with about 52% in 1996.

Average Total Loans For All Graduates(2008 Dollars; *Approximate Values)

  

Year

Degree

1996

2000

2004

2008

Bachelor degree

$10,138

 13,900*

13,900*

15,425

Associate degree & Certificates

$3,318

4,700*

4,500*

6,649

Source: Nat'l  Ctr. For Education Statistics, PEWresearch, December 2010

Among 2008 graduates who borrowed, the average loan for bachelor's degree recipients was more than $23,000, compared with slightly more than $17,000 in 1996. For associate's degree and certificate recipients, the average loan increased to more than $12,600 from about $7,600.

More college students are attending private for-profit schools, where levels and rates of borrowing are highest. Over the past decade, the private for-profit sector has expanded more rapidly than either the public or private not-for-profit sectors. In 2008, these institutions granted 18% of all undergraduate awards, up from 14% in 2003. Students who attend for-profit colleges are more likely than other students to borrow, and they typically borrow larger amounts.

Levels and rates of borrowing are typically highest at private, not-for-profit schools. During the past decade, the private for-profit sector has expanded more rapidly than either the public or private not-for-profit sectors. In 2008, these institutions granted 18% of all undergraduate awards, up from 14% in 2003.

Share of 2008 Graduates Borrowing More than $30,000 (2008 Dollars)

Degree

All Schools

Private for-profit

Private not-for-profit

Public

Bachelor

17%

54

25

12

Associate

4%

17

12

2

Certificate

3%

3

*na

2

Source: Nat'l  Ctr. For Education Statistics, PEWresearch, December 2010; *Sample size too small.

Other key findings from the Pew Research Center analysis:

  • 24% of 2008 bachelor's degree graduates at for-profit schools borrowed more than $40,000, compared with 5% of graduates at public institutions and 14% at not-for-profit schools.
  • About 25% of the recipients of an associate's degree or certificate borrowed more than $20,000 at both private for-profit and private not-for-profit schools, compared with 5% of graduates of public schools.
  • Generally, private for-profit school graduates have lower incomes, and are older, more likely to be from minority groups, more likely to be female, more likely to be independent of their parents and more likely to have their own dependents.

Borrowing patterns persist within fields of study. For almost every field of study at every level, students at private for-profit schools are more likely to borrow and tend to borrow larger amounts than students at public and private not-for-profit schools, concludes the report.

And, from the NRA "2010 Back to School Consumer Intentions and Actions Survey," quoted by Marketing Charts, besides tuition, college students are spending more on back-to-college merchandise in 2010. Spending is expected to total $33.77 billion, up 12% from $30.08 billion in 2009 and 8% from $31.26 billion in 2008.

For additional information from PEWresearch, please visit here.

 

 

 

 

 

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