Student loans 20 years later

Twenty years after beginning postsecondary education in 1995–96, approximately 38 percent of borrowers had fully paid off their loans without defaulting, while 25 percent had defaulted on at least one loan.

The National Center for Education Statistics (NCES) released a new First Look report today (October 5), entitled Repayment of Student Loans as of 2015 Among 1995–96 and 2003–04 First-Time Beginning Students: First Look. 

This report presents findings from the 2015 Federal Student Aid Supplements, also released today. The 2015 Federal Student Aid Supplements are collections of data from the National Student Loan Data System (NSLDS) that have been added to the 1996/2001 Beginning Postsecondary Students Longitudinal Study (BPS:96/01) and 2004/09 Beginning Postsecondary Students Longitudinal Study (BPS:04/09) Restricted-use Data Files. These data contain information on borrowing, Pell grant receipt, repayment, and default for up to 20 years for the BPS:96/01 students and up to 12 years for BPS:04/09 students.

Other findings from the 2015 Federal Student Aid Supplements include:

• Twelve years after beginning postsecondary education in the 2003-04, 20 percent of borrowers had fully paid off their loans without defaulting and 27 percent had defaulted on at least one loan.
• Fifty-five percent of students who started postsecondary education in 1995-96 and 63 percent who started in 2003-04 took out federal education loans within 12 years of entering postsecondary education.
• Among borrowers in the 2003-04 cohort who attained undergraduate certificates, the median amount owed 12 years after beginning postsecondary education was $3,700. For associate's degree recipients, the median amount owed was $13,800; and for borrowers who attained a bachelor's or higher degree, it was $11,700. Students who had ever borrowed to attend graduate school owed a median amount of $48,000 (including both undergraduate and graduate loans).
• Among borrowers in the 2003-04 cohort, 45 percent of those who had never attained a credential and were not enrolled in 2009 had defaulted on a loan within 12 years. Among those who had attained undergraduate certificates, 44 percent had defaulted within 12 years, as did 22 percent of associate's degree recipients, and 8 percent of bachelor's degree recipients.