Monday, May 16, 2022
Hawai'i Free Press

Current Articles | Archives

Thursday, September 20, 2018
Hawaii Student Debt Averages $25,125
By News Release @ 5:54 PM :: 3371 Views :: Hawaii Statistics, Higher Education

REPORT: Class of 2017 Four-Year Graduates’ Average Student Debt Is $28,650 Disparities in student loan burdens and defaults need increased attention

LINK: Hawaii Data  (Average debt $25,125, 42nd in USA)

News Release from The Institute for College Access & Success September 19, 2018

Oakland, CA - New data show that the average student debt for college graduates continues to climb but at a slower pace, according to a report released today by The Institute for College Access & Success (TICAS). Nationally, about two in three (65 percent) college seniors who graduated from public and private nonprofit colleges in 2017 had student loan debt. These borrowers owed an average of $28,650, 1 percent higher than the 2016 average.

“While student loans can be an excellent investment, there is a crisis among the millions of students who struggle to repay their loans, and they are disproportionately students of color or from low-income families,” said James Kvaal, TICAS president. “We need to invest more in student aid and in colleges to reduce students’ need to borrow, and make their loans easier to repay.”

The average debt held by four-year college graduates is an important benchmark for college affordability over time and across states because it measures debt levels for students at a comparable point in their academic careers. However, it does not tell the whole story on student debt. The burden of student debt is disproportionately borne by students of color, first-generation college students, and students from low-income families. For example, graduates from lower income families are five times as likely to default as their higher income peers, and 21 percent of Black college graduates defaulted within 12 years of entering college.

The reasons for the slower growth debt among four-year graduates in recent years are not yet known. The report discusses several recent trends that may have played a role. In recent years, states began reinvesting in higher education following the Great Recession and the federal government invested more resources in Pell Grants. Yet states’ spending remains far below pre-recession levels, and the maximum Pell Grant currently covers just 28 percent of public college costs.

Wide Variation among States

Student Debt and the Class of 2017, TICAS’ 13th annual report on debt at graduation, finds wide variations in debt levels across states as well as colleges. Average student debt at graduation in 2017 ranged from $18,850 in Utah to $38,500 in Connecticut, and new graduates’ likelihood of having debt ranged from 38 percent in Utah to 74 percent in New Hampshire. High-debt states remain concentrated in the Northeast and low-debt states are mainly in the West.

Vulnerable Groups of Students Bearing Disproportionate Burden

“State and national averages mask important differences in who carries debt and whether they can repay it,” said Diane Cheng, research director at TICAS and a coauthor of the report. “It’s clear we need to do far more to protect the most vulnerable students. A college degree is a powerful tool for social mobility, but unaffordable student debt can hold borrowers back.”

The report also highlights the need for increased efforts to ensure that vulnerable students are not being disproportionately burdened by debt.

According to the report:

● More than eight in 10 Pell Grant recipients who earned bachelor’s degrees had student debt, and their average debt was $4,500 more than their higher income peers. Most Pell Grant recipients have family incomes of $40,000 or less.

● Additionally, Pell Grant recipients with bachelor’s degrees were more than five times as likely to default within 12 years as their higher income peers (11 percent versus 2 percent).

● More than one in five (21 percent) Black bachelor’s degree recipients defaulted within 12 years of entering college, a much higher rate than their white (3 percent) and Hispanic (8 percent) peers.

● First-generation bachelor’s degree recipients were more than twice as likely to default within 12 years than students whose parents had attended college (10 percent versus 4 percent).

● The report’s data do not include for-profit colleges because too few of them report the necessary data, but borrowers who attended for-profit colleges face particular challenges with student loan repayment. For example, three in 10 (30 percent) bachelor’s degree recipients who started at forprofit colleges defaulted on their federal student loans within 12 years of entering college, seven times the rate of those who started at public colleges (4 percent) and six times the rate of those who started at nonprofit colleges (5 percent).

Policy Recommendations

With far too many Americans continuing to shoulder burdensome student debt, the report puts forward a series of policy recommendations for the federal government, states, and colleges. Among those: the federal government should increase and strengthen Pell Grants and make new investments that supplement – not supplant – state funding for public higher education. States should shift merit-based aid to need-based aid, improve data systems, and adopt a Student Loan Borrower Bill of Rights. Colleges should examine debt data across demographics, set aside funds for student emergencies, and set clear, reasonable student budgets. Additional policy recommendations can be found in the full report.

NOTE: An interactive map with details for all 50 states, the District of Columbia, and more than 1,000 public and nonprofit four-year colleges is available at https://ticas.org/posd/map-state-data.

# # #

An independent, nonprofit organization, The Institute for College Access & Success (TICAS) works to make higher education more available and affordable for people of all backgrounds. Our Project on Student Debt works to increase public understanding of student debt and the implications for our families, economy, and society. For more information see www.ticas.org or follow us on Twitter and Facebook.

UH News: Hawaiʻi student debt among the lowest in the U.S.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Life Alliance

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT