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1 1 (December 2, 2022)

handle is hein.crs/govejoy0001 and id is 1 raw text is: A Snapshot of Federal Student Loan Debt After years of increasing, growth in counts of federal student loan borrowers, average annual amounts borrowed, and average cumulative debt owed appears to be moderating somewhat. Overall, though, more student loan dollars continue to be disbursed than are repaid, resulting in an expanding federal student loan portfolio. Nearly 43 million individuals-one in six adult Americans-have federal student loan debt, and the federal student loan portfolio now exceeds $1.6 trillion. Annual Borrowing Title IV of the Higher Education Act of 1965 (HEA) authorizes the primary federal student loan programs. U.S. Department of Education (ED) data show that from academic year (AY) 1995-1996 to AY2011-2012, average annual amounts of Title IV loans undergraduate students borrowed increased from $3,800 to $6,500 (71%), while counts of undergraduate borrowers increased from 4.1 million to nearly 9.3 million (124%). (See Figure 1.) From AY2011-2012 to AY2017-2018, average amounts annually borrowed increased to $6,700 (3%), while counts of undergraduate borrowers decreased to 6.4 million (-31%). Figure I. HEA Title IV Loans: Average Annual Amounts Borrowed and Numbers of Borrowers (Estimates for AY 1995-1996 through AY2017-2018) Average Amount Borrowed $25k $20k _ t. te $15k a - 95-96 99-00 03-04 Number of Borrowers 10m 5m- 95-96 99-00 03-04 07-08 11-12 15-1617-18 07-08 11-12 15-16 17-18 Source: ED, National Postsecondary Student Aid Studies (NPSAS): 1996, 2000, 2004, 2008, 2012, 2016, and 2018. Notes: Nominal dollars. Excludes Parent PLUS Loans. For 50 states and DC only. Data series begins with AY 1995-1996. For graduate students, from AY1995-1996 to AY2011- 2012, average amounts annually borrowed increased from $10,500 to $21,200 (102%), while counts of graduate student borrowers increased from 688,000 to nearly 1.6 million (132%). Increased borrowing was due in part to graduate students becoming eligible for PLUS Loans in AY2007-2008. From AY2011-2012 to AY2017-2018, average amounts annually borrowed increased to $24,900 (17%) and counts of borrowers fell to 1.4 million (-10%). Graduate student borrowing comprises an increasing share of annual aggregate loan disbursements. In AY2021-2022, Updated December 2, 2022 46% of Direct Loan program dollars disbursed went to graduate students, up from 40% in AY2017-2018, and 34% in AY2011-2012. Cumulative Amounts Owed Figure 2 shows estimates of average cumulative debt for program completers by degree type since AY2003-2004; detailed estimates are described below. Many students borrow over a period of several years and, while in school, interest may accrue on their loans. Figure 2. Average Cumulative Amounts Owed on HEA Title IV Loans at Program Completion (Estimates for AY2003-2004 through AY20 17-2018) $200k degree proesna ce) $150k $100k 0 -&U -~rrn~~dtt E 0 Q $50k 03-04 07-08 11-12 15-16 17-18 Source: ED, NPSAS: 2004, 2008, 2012, 2016, and 2018. Notes: Nominal dollars. Estimates of total amount owed (including capitalized interest) on Title IV loans for program completers. (Data series begins with AY2003-2004; identification in AY2017-2018 of program completers is not directly comparable to prior years.) Estimates for graduate degree programs also include undergraduate borrowing. Excludes Parent PLUS Loans. For 50 states and DC only. Undergraduate certificate. In AY2003-2004, 50% (207,300) of undergraduate certificate recipients had Title IV loans and owed an average of $6,300. In AY2017-2018, 49% (248,700) of certificate recipients had Title IV loans and owed an average of $14,800. Associate's degree. In AY2003-2004, 31% (329,700) of students who earned an associate degree had Title IV loans and owed an average of $9,700. In AY2017-2018, 33% (259,100) of associate's degree recipients had Title IV loans and owed an average of $20,900. Bachelor's degree. In AY2003-2004, 58% (980,000) of students who earned a bachelor's degree had Title IV loans and owed an average of $16,900. In AY2017-2018, 53% (1.0 million) of students earning a bachelor's degree had Title IV loans and owed an average of $27,500. Master's degree. In AY2003-2004, 55% (323,800) of students who earned a master's degree had Title IV loans and owed an average cumulative total of $32,700. In

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