WASHINGTON (CBS DC) – American students continue to borrow more and more money to pay for increasing college costs, but the number of graduates paying them back is declining.
A new report released this month from the Department of Education finds that nearly two-thirds (64 percent) of graduates from the class of 2008 borrowed for college, compared with 49 percent of those graduating in 1993. And the average amount borrowed has skyrocketed from $14,000 in 1993 to $24,700 in 2008.
One year after receiving their degrees, only 60 percent of 2008 graduates were repaying parts of their borrowed money.
Nearly one-third (31 percent) of recent grads reported their monthly loan payments as greater than 12 percent of their income, a nearly 10 percent increase from 2000.
The average total price of attending both public and private non-profit 4-year institutions – in both current and inflation-adjusted numbers – has increased every year since 2002, the study reports. The College Board estimates that private student loan borrowing increased from $23 billion in 1992-93 to $100 billion in 2007-08.
Adding more debt, the report also showed that one-in-four students who graduated with a bachelor’s degree in 2008 had enrolled in graduate school just a year later.
And 27 percent of 2008 graduates moved back with their parents or other family members within a year of graduation.