Studies Paint Different Picture of Student Debt
New statistics from the National Postsecondary Student Aid Study show fewer college students are taking out loans to pay for their education, while another report indicates that a large chunk of student debt is concentrated in families with the means to pay it off. The federal study, according to Inside Higher Ed, found that 38% of full- and part-time undergraduates had taken out student loans for the 2015-16 academic year, compared to 42% for the 2011-12 year (the last time the study was conducted). The drop occurred across the board at private and public institutions, two- and four-year schools, and even at for-profit colleges. The average loan amounted to $7,600, up about $500 from four years prior. However, that average includes loans by students at for-profit schools, who typically borrowed much more than students attending nonprofit institutions. One reason for the decline in borrowing rates may be that grants to college students increased during the period covered by the study,...