Student-Loan-Press-Briefing-Presentation

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Some higher education background • College remains a worthwhile investment for most of those who pursue it • Median annual earnings were $23,000 higher for bachelor’s degree holders compared to high school graduates in 2014 • Unemployment rates for bachelor’s degree holders much lower than high school graduates (6% vs 3.5% in 2014) • <strong>Student</strong> loans are an important tool for financing college for many students • Speech by William C. Dudley, March 4 on student loans: • “ . . .[T]here is much uncertainty and heterogeneity in outcomes, with net returns to these human capital investments being negative for some. Understanding causes and consequences of this heterogeneity is important.” • “How we finance post-secondary education has significant effects on a variety of critical economic outcomes.” 2
Researching student borrowing • We try to better understand student loans for two reasons: • <strong>Student</strong> debt is large, and appears to have significant effects on macroeconomic outcomes (household formation, homeownership, consumption) • Good information on borrowing and repayment is necessary to design best policies for financing this most important kind of investment 3
Page 1: Student Loan Borrowing and Repaymen
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 and 14: Larger rise in level of lower incom
Page 15 and 16: Wrapping up, part 1 • Student deb
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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