Average Student Loan Debt at Graduation

Average Student Loan Debt at Graduation

Two-thirds (69%) of Bachelor’s diploma recipients within the class of 2019 graduated with federal and personal student loans, a median of $29,900 per borrower. The imply student loan debt amongst all Bachelor’s diploma recipients, together with those that didn’t borrow, was $20,600.

These figures embrace federal and personal student loans, however not mother or father loans. The common mother or father loan debt was $37,200 among the many 14% of fogeys of Bachelor’s diploma recipients who borrowed to pay for his or her student’s faculty schooling. It doesn’t embrace mother or father loans borrowed for different kids.

Note that the time period common debt at commencement refers back to the common amongst simply the students who graduated with debt. The imply debt at commencement for Bachelor’s diploma recipients, which is the common amongst all students who graduated with a Bachelor’s diploma (together with those that graduated with no debt) is $20,600. This is similar because the product of the common debt determine with the share who graduated with debt. For instance, $29,900 x 69% = $20,600.

Average debt at commencement for Bachelor’s diploma recipients varies relying on the kind of faculty. The common debt at commencement for Bachelor’s diploma recipients was $27,700 at public schools (68% borrowing), $30,800 at personal non-profit schools (66% borrowing) and $41,000 at personal for-profit schools (85% borrowing).

Average Debt at Graduation for Other Degree Levels

The common debt at commencement for Associate’s diploma recipients was $19,600, with 47% borrowing.

The common debt at commencement for Certificate recipients was $17,400, with 67% borrowing.

Overall, the common graduate student debt at commencement for graduate diploma recipients is $66,000, with 56% borrowing. This doesn’t embrace excellent undergraduate debt, which brings the common debt at commencement to $71,300, with 73% borrowing. The common graduate student debt at commencement varies considerably by diploma stage and area of research.

  • Master’s levels $44,900 (54%)
    • MBA $52,600 (47%)
    • MSW $82,300 (88%)
  • PhD $107,500 (47%)
  • Law (LLB or JD) $113,300 (62%)
  • Medicine (MD) $223,700 (84%)

The development in common student debt at commencement has slowed for Bachelor’s diploma recipients, however not the recipients of Associate’s levels, Certificates or graduate levels, as Bachelor’s diploma recipients have approached undergraduate Federal Direct Stafford loan limits. This has contributed to a shift in borrowing from student debt to mother or father debt for Bachelor’s diploma recipients however not for different levels, yielding a big improve in common mother or father loan debt at commencement for Bachelor’s diploma recipients.

Historical Average Debt at Graduation Statistics

This desk exhibits historic figures for common debt at commencement and the share graduating with student loans for recipients of Bachelor’s levels, Associate’s Degrees and Certificates. It additionally contains historic figures for the common mother or father loan debt at commencement for Bachelor’s diploma recipients. These figures aren’t adjusted for inflation.

Year

Bachelor’s Degrees

Associate’s Degrees

Certificates

Parents of Bachelor’s
Degree Recipients

2018-19

$29,900 (69%)

$19,600 (47%)

$17,400 (67%)

$37,200 (14%)

2017-18

$29,800 (69%)

$19,200 (47%)

$16,800 (67%)

$35,600 (14%)

2016-17

$29,700 (69%)

$18,900 (48%)

$16,100 (67%)

$34,100 (14%)

2015-16

$29,700 (69%)

$18,500 (48%)

$15,500 (67%)

$32,600 (14%)

2014-15

$29,600 (69%)

$18,200 (48%)

$14,900 (66%)

$31,200 (15%)

2013-14

$29,500 (69%)

$17,800 (49%)

$14,400 (66%)

$29,900 (15%)

2012-13

$29,500 (69%)

$17,500 (49%)

$13,800 (66%)

$28,600 (15%)

2011-12

$29,400 (69%)

$17,200 (50%)

$13,300 (66%)

$27,400 (16%)

2010-11

$27,700 (68%)

$16,100 (49%)

$12,700 (65%)

$26,300 (15%)

2009-10

$26,100 (68%)

$15,000 (49%)

$12,100 (65%)

$25,200 (15%)

2008-09

$24,600 (67%)

$14,100 (48%)

$11,600 (64%)

$24,200 (14%)

2007-08

$23,200 (67%)

$13,200 (48%)

$11,100 (63%)

$23,300 (14%)

2006-07

$22,000 (66%)

$12,400 (45%)

$10,100 (60%)

$21,200 (13%)

2005-06

$20,800 (65%)

$11,600 (42%)

$9,200 (58%)

$19,300 (12%)

2004-05

$19,700 (65%)

$10,900 (39%)

$8,400 (56%)

$17,600 (11%)

2003-04

$18,600 (64%)

$10,300 (36%)

$7,600 (53%)

$16,000 (10%)

2002-03

$18,300 (64%)

$10,100 (37%)

$7,700 (51%)

$15,600 (10%)

2001-02

$17,900 (63%)

$9,800 (38%)

$7,700 (48%)

$15,200 (10%)

2000-01

$17,600 (63%)

$9,600 (38%)

$7,700 (45%)

$14,700 (10%)

1999-00

$17,300 (62%)

$9,400 (39%)

$7,800 (43%)

$14,400 (10%)

1998-99

$16,000 (61%)

$8,300 (39%)

$7,100 (45%)

$12,600 (9%)

1997-98

$14,900 (60%)

$7,300 (39%)

$6,500 (46%)

$11,100 (9%)

1996-97

$13,800 (59%)

$6,400 (40%)

$5,900 (48%)

$9,800 (8%)

1995-96

$12,800 (58%)

$5,700 (40%)

$5,400 (50%)

$8,600 (8%)

1994-95

$11,500 (54%)

$5,500 (38%)

$5,200 (46%)

$7,800 (7%)

1993-94

$10,300 (49%)

$5,300 (36%)

$5,000 (43%)

$7,000 (7%)

1992-93

$9,300 (46%)

$5,100 (35%)

$4,800 (40%)

$6,400 (6%)

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Over the final decade, common debt at commencement has elevated by 21% for Bachelor’s diploma recipients, by 39% for Associate’s diploma recipients, by 50% for Certificate recipients and by 53% for folks.

Over the final twenty years, common debt at commencement has elevated by 86% for Bachelor’s diploma recipients, by 136% for Associate’s diploma recipients, by 146% for Certificate recipients and by 194% for folks.

This chart exhibits historic common debt at commencement for Bachelor’s diploma recipients.

The figures regarding common student debt at commencement are based mostly on an evaluation by Mark Kantrowitz of knowledge from the 1992-1993, 1995-1996, 1999-2000, 2003-2004, 2007-2008, 2011-2012 and 2015-2016 National Postsecondary Student Aid Study (NPSAS), with geometric interpolation and projection in between NPSAS years.

Impact of Number of Years in College on Amount of Debt

Some students take greater than 4 years to graduate with a Bachelor’s diploma. This desk exhibits the affect of time to completion on the quantity of student debt at commencement for Bachelor’s diploma recipients and the share graduating with student loan debt, based mostly on information from the 2015-2016 NPSAS.

Average Debt at Graduation

By Number of Years in College

4 years

5 years

Public

$27,082 (65.0%)

$32,085 (81.5%)

Private Non-Profit

$32,239 (67.5%)

$35,694 (83.1%)

Private For-Profit

$43,940 (85.2%)

$45,930 (97.3%)

Overall

$30,043 (67.1%)

$34,569 (83.4%)

Thus, even when it takes students at public schools an additional 12 months to graduate, as in contrast with students at personal non-profit schools, they nonetheless graduate with much less debt, on common.

Average Number of Student Loans per Borrower

Of undergraduate students who borrow federal student loans to pay for a Bachelor’s diploma, greater than 95% borrow for at the least 4 years.

On common, 85% of undergraduate students who borrowed a backed Federal Direct Stafford loan additionally borrowed an unsubsidized backed Federal Direct Stafford loan, based mostly on information from the 2015-2016 NPSAS. Likewise, 85% of undergraduate students who borrowed an unsubsidized Federal Direct Stafford loan additionally borrowed a backed Federal Direct Stafford loan.

Thus, the standard student who borrows for a Bachelor’s diploma will graduate with 7.5 or extra Federal Direct Stafford loans, together with each backed and unsubsidized loans.

About 11% additionally borrow institutional or personal student loans and about 6% borrow institutional or personal student loans with out federal student loans. That brings the common variety of student loans to eight.2 loans.

Thus, the standard variety of student loans at commencement with a Bachelor’s diploma will vary from 8 to 12. This doesn’t depend Federal Parent PLUS loans.

Average Monthly Student Loan Payment

According to the Federal Reserve Board’s Report on the Economic Well-Being of U.S. Households (2017, 2018), the common month-to-month student loan fee in 2016 was $393 and the median fee was $222. These figures are based mostly on the Survey of Household Economics and Decision-making (SHED). SHED additionally reported that “individuals who either did not complete their degree or who attended a for-profit institution are disproportionately likely to fall behind on their student loan payments.”

Based on information from the 2012 follow-up to the 2007-08 Baccalaureate & Beyond longitudinal research (B&B:08/12), amongst Bachelor’s diploma recipients in 2007-08 who have been nonetheless repaying their student loans in 2012, the common month-to-month student loan fee was $346 and the median fee was $250.

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This compares with a median automotive loan fee of $411 amongst Bachelor’s diploma recipients ($405 amongst these with student loan funds).

The 2017 follow-up to the 2015-16  Baccalaureate & Beyond longitudinal research (B&B:16/17), supplies up to date and extra detailed information. The common student loan fee was $305 and the median was $240. For federal student loans, the common loan fee was $244 and the median was $215. For personal student loans, the common loan fee was $383 and the median was $300. This compares with a median automotive loan fee of $392 and a median of $340. 

According to the 2009 follow-up to the 2003-04 Beginning Postsecondary Students longitudinal research (BPS:04/09), the common month-to-month student loan fee amongst Bachelor’s diploma recipients was $254 and the median fee was $200. This compares with a median month-to-month student loan fee of $139 amongst faculty dropouts, with a median fee of $100.

For comparability, the month-to-month student loan fee on $30,000 in student loan debt at 5% curiosity with a 10-year time period is $318 monthly.

Average Student Loan Repayment Term

The common reimbursement time period for federal student loans is 16 years, as of December 31, 2018.

The Federal Direct Loan Portfolio by Repayment Plan spreadsheet supplies information regarding the whole student loan {dollars} and variety of debtors in every reimbursement plan within the Direct Loan program.

Assuming the utmost reimbursement time period for every reimbursement plan, the common reimbursement time period is 15.5 years when weighted by the variety of debtors. This assumes a most of 25 years in prolonged and graduated reimbursement plans. The common quantity of debt in every reimbursement plan is per the 25-year reimbursement time period.

If one assumes a most of 30 years as a substitute, which might require consolidating the loans, the common reimbursement time period is 15.9 years when weighted by the variety of debtors.

The common reimbursement time period has been rising over time, as common debt has elevated. The common reimbursement time period was 14.4 years 5 years in the past.

Note that these figures are a ceiling, based mostly on the utmost time period within the present reimbursement plan for debtors in reimbursement. Borrowers generally tend to decide on the reimbursement plan with the bottom month-to-month fee, which corresponds to the longest reimbursement time period, because it “saves” cash of their month-to-month finances.

It is feasible that some debtors are in reimbursement for a long term if the debtors change reimbursement plans or select deferments and forbearances. It can be potential that some debtors repay the final 12 months or two of the reimbursement plan in a single large lump sum.

Pell Grant Recipients Graduate with More Student Loan Debt

As illustrated in these charts, Federal Pell Grant recipients usually tend to graduate with student loan debt and with extra student loan debt than non-recipients. This information is predicated on the 2015-2016 NPSAS.

Among Associate’s diploma recipients, students who’ve acquired a Pell Grant are twice (99%) as more likely to graduate with student loan debt. The common debt at commencement is $5,676 (40%) larger.

Among Bachelor’s diploma recipients, students who’ve acquired a Pell Grant are two-thirds (67%) extra more likely to graduate with student loan debt. The common debt at commencement is $4,466 (17%) larger.

Six Figure Student Loan Debt

This desk exhibits the share of federal student loans excellent by the quantity of debt utilizing information from the FSA Data Center.

Summing the final two rows of the desk for every quarter yields the share of debtors with excellent federal student loans within the six figures. This contains not simply debtors who graduated with six determine debt, but in addition debtors whose debt has elevated after commencement, typically because of an prolonged interval of non-payment.

Six-Figure Federal Student Loan Debt

By Year

% of

Dollars

% of

Borrowers

2017 Q2

30.8%

5.4%

2017 Q3

31.2%

5.4%

2017 This autumn

31.7%

5.6%

2018 Q1

32.1%

5.5%

2018 Q2

32.7%

6.0%

2018 Q3

33.2%

6.0%

2018 This autumn

33.7%

6.0%

2019 Q1

34.1%

6.2%

This chart exhibits the variety of students graduating with six-figure student loan debt, based mostly on information from the National Postsecondary Student Aid Study (NPSAS). It contains each federal and personal student loan debt, however not mother or father loan debt.

As will be seen from the chart, greater than 90% of debtors graduating with six-figure student loan debt are graduate students, not undergraduate students.

This desk, which is predicated on the 2015-16 NPSAS, exhibits the percentile distribution of student loan debt at commencement for undergraduate and graduate students who graduate with student loan debt. Thus, almost 90% of all undergraduate students graduate with $50,000 or much less in student loan debt. If one contains students who graduate with no debt, the identical is true of Bachelor’s diploma recipients, the place the ninetieth percentile is $50,343.

 

Degree Level

tenth

twenty fifth

fiftieth

seventy fifth

ninetieth

Certificate

$4,360

$7,063

$11,250

$19,509

$31,503

Associate’s Degree

$3,274

$6,500

$15,005

$26,363

$38,832

Bachelor’s Degree

$6,500

$15,313

$27,000

$40,130

$56,017

All Undergraduates

$4,914

$9,795

$20,809

$33,325

$50,035

Master’s Degree

$9,900

$19,169

$35,250

$57,238

$86,000

MBA

$6,200

$19,567

$38,021

$61,500

$97,137

MSW

$16,350

$27,663

$55,187

$80,720

$117,763

PhD

$11,175

$34,035

$68,978

$116,341

$178,570

Law (LLB or JD)

$38,000

$61,500

$108,450

$167,408

$217,000

Medicine

$50,000

$119,460

$176,464

$274,637

$331,260

Dentistry

$144,010

$148,321

$230,778

$352,206

$413,357

Pharmacy

$27,343

$30,750

$68,250

$130,717

$206,161

Based on the 2015-16 NPSAS, 0.5% of Bachelor’s diploma recipients graduated with $100,000 or extra in federal and personal student loan debt, not together with mother or father loans. Similarly, 0.8% of fogeys of Bachelor’s diploma recipients borrowed $100,000 or extra in Federal Parent PLUS loans for his or her baby’s undergraduate schooling. (Note that that is the Federal Parent PLUS loan debt for only one baby.)

High Net Price Colleges Drive Student Loan Debt at Graduation

The failure of presidency grants to maintain tempo with will increase in faculty prices on a per-student, inflation-adjusted foundation, shifts the burden of paying for faculty from the federal government to the households. But, household revenue has been flat for the reason that late Nineties, so households are pressured to both shift enrollment to lower-cost schools or to borrow extra.

Thus, will increase in student loan debt are pushed by two parts, specifically larger faculty prices and inadequate authorities grants.

This phenomenon manifests itself in a robust correlation between web worth and debt at commencement.

This chart exhibits the connection between the one-year web worth and student loan debt at commencement, based mostly on the 2015-16 NPSAS. Student loan debt at commencement will increase monotonically with will increase within the web worth. There is a $3,500 improve in student loan debt at commencement for each $10,000 improve within the web worth.

There are comparable outcomes involving tuition and the price of attendance, in addition to personal student loans. Higher faculty prices result in larger student loan debt.