New Student Debt Report Looks at Those Who Borrow Most


April 27, 2010
by Scholarships.com Staff
While many students – and their parents – will say no amount of student loan debt is ideal, a new report has zeroed in on those at the top of the pile, those who borrow most and may be most at risk for defaulting on their loans and running the risk of hurting their credit scores.

While many students – and their parents – will say no amount of student loan debt is ideal, a new report has zeroed in on those at the top of the pile, those who borrow most and may be most at risk for defaulting on their loans and running the risk of hurting their credit scores.

The newest student debt story comes from a report released yesterday by the College Board Advocacy and Policy Center, which looked at data from 2007-2008 graduates who participated in the “National Postsecondary Student Aid Study.” It paid particular attention to the 17 percent of all bachelor’s degree recipients in that year who graduated with at least $30,500 in student loans. Of those, one in six had average student loan bills of $45,700, with much of those loans coming from private lenders who typically lend to students at higher interest rates.

An article in The Chronicle of Higher Education focused on one particular detail included in the report – that those who borrow more are disproportionately black. Although the sample size was small, and the report’s researchers were hesitant to place too much importance on any breakdowns based on race, the numbers did show some differences in that category. According to the study, 27 percent of black bachelor’s degree recipients borrowed $30,500 or more, compared to 16 percent of white graduates, 14 percent of Hispanic students, and 9 percent of Asian students. Those numbers have little to do with income, however. Middle-class students tended to borrow more than those coming from low-income households, perhaps suggesting that those are the students who are more likely to attend private colleges rather than public institutions.

How else did the report describe those students who borrowed most?

  • The frequency of high debt is higher among independent students than among dependent students (24 percent graduated with at least $30,500 in debt).
  • Students who graduated from for-profit institutions are much more likely to have high debt levels than other students.
  • Private loans are most prevalent among students with family incomes of $100,000 or higher.
  • Although black graduates have the highest debt totals, Asian students rely more on private loans. About 12 percent of Asian graduates had no federal loans, with 68 percent of their student loan debt coming from non-federal sources.
  • Higher-income parents of bachelor’s degree recipients are more likely than those with incomes below $60,000 to take out PLUS Loans, and borrow more when they do. Thirty percent of the lowest-income parents borrowed an average of $22,400 in PLUS Loans, while 47 percent of those with incomes of $100,000 or higher borrowed an average of $41,500.

Getting more college financial aid doesn’t have to be a relentless search. Scholarships.com is totally free. Connect with our massive database of millions of college scholarships at any time by searching for awards in a variety of ways. Scholarships.com offers the quickest and easiest way to search for, apply to, and win college scholarships. Start making your college education affordable or perhaps even free, by conducting a free college scholarship search at Scholarships.com.

Discuss

Share your thoughts and perhaps thousands of students will benefit from your unique insight on the subject!



If you can read this, don't touch the following fields


 

    When it comes to earning scholarships for college, some students have the go big or go home mentality and chase the big buck scholarship opportunities. Landing a huge scholarship may take more work - meaning more time spent on the application process and essays, needing strong recommendation letters and competing against a pool of highly-qualified students. If you're motivated to land a large dollar scholarship that can potentially pay for your entire college tuition, check out these generously-endowed scholarships:

Large Dollar Scholarships

June 23, 2017 11:01 AM
by Susan Dutca
When it comes to earning scholarships for college, some students have the "go big or go home" mentality and chase the big buck scholarship opportunities. Landing a huge scholarship may take

    Everyone knows big-name companies such as Google or Coca-Cola...but did you know that these companies also offer scholarship opportunities to help you pay for college? That's right! If you love these quality products and services, you may be interested these generously-endowed scholarships. Check out this list of brand name scholarships offered by the companies with which you are most familiar:

Brand Name Scholarships

June 22, 2017 2:44 PM
by Susan Dutca
Everyone knows big-name companies such as Google or Coca-Cola...but did you know that these companies also offer scholarship opportunities to help you pay for college? That's right! If you love

    Independence Day, also known as the Fourth of July, is the day in which we celebrate America's independence and freedom. Education has been, and will always be a great equalizer. Even though college can be expensive, it is still a fast track towards the American Dream and can be more easily attained with the help of financial aid in the form of grants and scholarships - which do not have to be repaid! Exercise your freedom this July and help make your college education dreams more affordable with these red, white and blue July 2017 scholarships:

July 2017 Summer Scholarships

June 22, 2017 11:43 AM
by Susan Dutca
Independence Day, also known as the Fourth of July, is the day in which we celebrate America's independence and freedom. Education has been, and will always be a great equalizer. Even though
POTUS Donald Trump is pushing for apprenticeship programs and intends to support the initiative with an apprenticeship grant program of up to $200 million, with special emphasis on industries such as information technology,  healthcare, and manufacturing. The college alternative initiative hopes to attract and prepare students for great careers that do not require a four-year degree or the massive debt that often comes with those four-year degrees and even two-year degrees.

POTUS Pushing Apprenticeship Programs, Grants in 2017

June 14, 2017 11:16 AM
by Susan Dutca
POTUS Donald Trump is pushing for apprenticeship programs and intends to support the initiative with an apprenticeship grant program of up to $200 million, with special emphasis on industries such as

    Summer is finally here and fall semester may be the last thing on your mind right now. However, you may be one of the many students who need to work a summer gig, save up, or rely on your parents and student loans to help foot your fall tuition bill. While those are all legitimate options, you now have more free time (and less homework and tests), so why not take advantage of these summer scholarships? It's not too late to earn free college scholarships to help pay for school. Use your downtime wisely by applying for these summer 2017 scholarships!:

Summer 2017 Scholarships

June 2, 2017 3:47 PM
by Susan Dutca
Summer is finally here and fall semester may be the last thing on your mind right now. However, you may be one of the many students who need to work a summer gig, save up, or rely on your

    In support of lesbian, gay, bisexual, transgender, queer (LGTBQ) Pride Month this June, Scholarships.com is adding more color to its themed scholarships with scholarships for LGBTQ students and allies. Scholarships.com is dedicated to bringing equal financial aid and free college scholarship opportunities for all students.

LGBT Scholarships for Pride Month 2017

June 1, 2017 11:42 AM
by Susan Dutca
In support of lesbian, gay, bisexual, transgender, queer (LGTBQ) Pride Month this June, Scholarships.com is adding more color to its themed scholarships with scholarships for LGBTQ students and