The Student Loan Debt Epidemic

By Arkansas Next staff on Tuesday, September 3, 2019


STUDENT LOAN DEBT IN ARKANSAS

$10 BILLION
Arkansas student loan debt.

55%
of all Arkansas residents have some student loan debt.

338,000
Borrowers in Arkansas

12.2%
Arkansas default rate

6th
Little Rock’s ranking in the nation for most student loan debt in 2018.


STUDENT LOAN DEBT IN THE U.S.

(That's $1,598,112,980,000, if you're counting.)

54%
of young adults who went to college took on some debt.

45 MILLION
The number of U.S. borrowers with student loan debt.

$35,514
Average amount students owe nationwide.


What does your student loan debt look like?

Student debt: $17,000
Interest rate: 6.80%
Loan term (in years): 10
Monthly payment: $195.64
What you’ll pay by the end of term: $23,476.21
Annual salary needed: $23,476.80


Student debt: $26,859
Interest rate: 6.80%
Loan term (in years): 10
Monthly payment: $309.09
What you’ll pay by the end of term: $37,091.53
Annual salary needed: $37,090.80


Student debt: $26,859
Interest rate: 6.80%
Loan term (in years): 20
Monthly payment: $205.03
What you’ll pay by the end of term: $49,204.84
Annual salary needed: $24,603.60


Student debt: $32,371
Interest rate: 6.80%
Loan term (in years): 10
Monthly payment: $372.53
What you’ll pay by the end of term: $44,703.60
Annual salary needed: $44,703.60


STUDENTS WITH THE MOST DEBT

As of 2019, more than 42 million student loan borrowers have student loan debt of $100,000 or less.

More than 2.5 million student loan borrowers have student loan debt greater than $100,000, with 610,000 of that total holding student loan debt greater than $200,000.

The largest concentration of student loan debt is $10,000–$25,000, which accounts for 12.3 million student loan borrowers.

Students who pursue more education (master’s or doctoral degrees) owe more money, but they typically pay off their debt faster.

Students who pursue less education are more likely to default on their loans, especially if they did not finish their program.

22%
of U.S. adults who went to college are still paying off loans.

20%
of U.S. adults are behind on their student loan payments.


HOW MANY STUDENT LOANS ARE IN DEFAULT?

11.4%
The student loan delinquency or default rate (90-plus days delinquent).

$101.4 BILLION
Cumulative student loans in default (360-plus days delinquent) — that’s 5.1 million borrowers!


WHERE YOU GO MATTERS

Public Colleges: Sixty-six percent of borrowers who graduated from public colleges have student loan debt. Average student loan debt at public colleges is $25,550, which is 25% higher today than it was in 2008.

Private NonProfit Colleges: Sevent-five percent of borrowers who graduated from private nonprofit colleges have student loan debt. Average student loan debt at those colleges is $32,300, which is 15% higher than it was in 2008.

For-Profit Colleges: Eighty-eight percent of borrowers who graduated from for-profit colleges have student loan debt. Average student loan debt at those colleges is $39,950, which is 26% higher today than in 2008.


Where The Jobs Are: Job Growth by Industry

Northwest Region: Fastest growing job market in Arkansas at 16.7% growth, which is higher than the national average.

Sources: Board of Governors of the Federal Reserve System, FRED; U.S. Department of Education; the Arkansas Student Loan Authority; The Project for Student Debt; BeProBeProud.org; LendingTree; FinAid.or. "Where the Jobs Are": ExpectMoreNow.org Projections through 2023