NCES Releases New Report on Student Borrowing

A new report by the U.S. Education Department's National Center for Education Statistics (NCES) shows that college students are borrowing more and taking longer to pay off the debt, reports Inside Higher Ed.

The report looked at patterns of student loan repayment for two separate groups of borrowers—those who started college in 1995-96 and those who started in 2003-04. Twelve years after first entering college, the median percentage owed on student loans by the first group of borrowers was 70 percent; for the second group, it was 78 percent. During the same period, 18 percent of those in the first cohort had defaulted on one student loan, compared to 27 percent of the second cohort.

Multiple factors have contributed to changes in loan repayment, the report noted, including the rising price of college, the Great Recession, changes in federal policy making income-driven repayment popular, and the composition of loan borrowers as enrollment in community colleges and for-profits increased during the recession.

 

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Inside Higher Ed

https://www.insidehighered.com/news/2017/10/05/new-federal-data-student-borrowing-repayment-and-default