Student-Loan-Press-Briefing-Presentation

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Little repayment progress by borrowers from lower-income areas • We look at the net progress that borrowers from each income area have made in paying down their student loan balances • The borrowers from the lowest income areas have made practically no progress on paying down their loans • The aggregate balance, five years after leaving school, is still at 97% of where it was when they left school • This is a sharp contrast with the borrowers from higherincome areas, who have paid down nearly 30% 32
Wrapping up • These results are further evidence of the important heterogeneity we see in the outcomes of higher education investments financed with student debt • Borrowers who left school in the Great Recession had particular difficulty with their student loan repayment, with many defaulting, becoming seriously delinquent, or not being able to reduce their balance • Borrowers from lower and middle-income areas as well as borrowers who originated loans in their 30s are also at greater risk of default and delinquency • The low overall repayment rate helps explain the steady growth in aggregate student debt, now at nearly 1.2 trillion dollars 33
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 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: 2009 cohort repayment rates by inco

Student-Loan-Press-Briefing-Presentation

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