Student Debt and the Class of 2017

By Yesenia Ayala

Recently, The Institute for College Access and Success released a report titled “Student Debt and the Class of 2017.” The report highlighted the debt trends of recent college graduates from different types of four-year institutions.

Among the findings:

• Nationally, the average debt for a bachelor’s degree recipient at public and private non-profit higher education institutions was 1% higher in 2017 than in 2016.
• The maximum Pell grant in 2015-2016 covered only 30% of all college costs.
• About 65% of college seniors in 2017 graduated with student loan debt. On average the amount of debt they held was $28,650.
  • Students in west coast states had lower average loan debt. For example, Utah college graduates owed an average of $18,850.
  • Students in the northeast had higher average loan debt. For example, Connecticut college graduates owed an average of $38,500.
  • The average student debt in 18 states was $30,000 or more.
  • 15% of the Class of 2017’s student debt came from nonfederal loans.
• Graduates from lower income families were five times as likely to default on their loans than their peers from higher income families.
  • • 2017 college graduates who received Pell grants were 11% more likely to default within 12 years versus 2% of students from higher income families.
• 21% of Black college graduates, 3% of White college graduates, and 8% of Hispanic college graduates defaulted on their student loans within 12 years of entering college.
• First generation college graduates were more than twice as likely to default on their student loans than students whose parents obtained a college education.
• Those who defaulted on their federal student loans within 12 years of entering college included: 30% of bachelor’s degree recipients who started at for-profit colleges, 4% who started at public colleges, and 5% who started at non-profit institutions.