Student-Loan-Press-Briefing-Presentation

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Increase, then decline in borrowers from lower and middle income areas • We don’t have borrower income, so we assign borrowers to groups based on the average income in the ZIP code they lived in when they originated their first student loan • Income data are from IRS and refer to 2010 • Much of the change in borrowing has come from an increase, then decrease, in the number of active borrowers from lower income areas following the recession • More borrowers from lower and middle-income areas is consistent with the intended purpose of student loan program: to facilitate upward income mobility 14
Wrapping up, part 1 • <strong>Student</strong> debt continues to increase, especially for older borrowers • Increase reflects new borrowers, higher balances and slow repayment • There is significant heterogeneity in amounts owed • Highest balances are owed by borrowers in their 30s • The number of active borrowers peaked in 2010 • Significant decline since then • Increase and subsequent decline driven by borrowers from relatively lower-income areas 15
Page 1 and 2: Student Loan Borrowing and Repaymen
Page 3 and 4: Researching student borrowing • W
Page 5 and 6: Student loans increased as other de
Page 7 and 8: Increases among borrowers of all ag
Page 9 and 10: Significant heterogeneity in amount
Page 11 and 12: Number of active borrowers peaked i
Page 13: Larger rise in level of lower incom
Page 17 and 18: Distribution of payment history Sna
Page 19 and 20: Defaults and default rate Thousands
Page 21 and 22: Default rate by school leaving coho
Page 23 and 24: 5-year cohort default and delinquen
Page 25 and 26: 5-yr Cohort default and delinquency
Page 27 and 28: Student loan repayment behavior Stu
Page 29 and 30: 5-year cohort repayment difficultie
Page 31 and 32: 2009 cohort repayment rates by inco
Page 33: Wrapping up • These results are f

Student-Loan-Press-Briefing-Presentation

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