Students who completed an undergraduate program in 2007-8 were more likely to borrow money to pay for college but less likely to be repaying those loans within a year of graduation compared with their counterparts who graduated in 1992-93 and 1999-2000, a new federal report shows.
The report, released Thursday, analyzes the borrowing and repayment trends of bachelor’s degree recipients within a year of graduation for three cohorts of students. The data were collected through the Baccalaureate and Beyond Longitudinal Study from the U.S. Education Department’s National Center for Education Statistics, which, like the rest of the federal government, returned to work on Thursday.
The study found that the percentage of college graduates who borrowed for their undergraduate education rose in each successive cohort from 49 percent (1993) to 64 percent (2000) to 66 percent (2008). The average cumulative debt of graduates also increased in each successive cohort. The number of borrowers repaying their loans within a year of graduation dipped in 2009 to 60 percent, compared with 66 and 65 percent in the previous cohorts. At the same time, the percentage of graduates not in repayment but who still owed money on their student loans (due to either deferments, forbearances or default) rose.
Other findings from the survey include:
- One in four students who graduated with a bachelor’s degree in 2008 had enrolled in graduate school a year later, which represents a slight increase from previous cohorts. However, across all three cohorts, students’ decision to attend graduate school within a year of graduation was not correlated with how much debt they had already incurred.
- Student debt levels were also not correlated with a graduate’s decision to move back with parents or other family within a year of graduation (only in cases in which the student left home for college in the first place). That scenario played out at a higher rate (27 percent) for the 2008 graduates than for their 2000 counterparts (18 percent) but at the same rate as 1993 graduates.