As of March 2019, 43 million Americans held student loans provided through federal government programs, the largest segment of the education loan market. But this system is under pressure as more borrowers struggle to repay, a problem compounded by the complexity of the repayment process. Research on the pathways borrowers take through the…

In 1965, the federal government passed the Higher Education Act (HEA), which paved the way for today's federal student loan program. Much of the policy debate about student loans centers on the amount of debt that has already been issued, escalating default rates, and what can be done to make repayment more affordable. But often overlooked in this…

This qualitative study explores the perceptions of value added to the lives of graduates who borrowed money to fund their college educations. Through the lens of cognitive dissonance theory, five themes emerged. Overall, the study participants agreed that the ability to take on student loans to fund their education was worth it, but on the other…

"Fault Lines in Borrowing: Academic Outcomes of Students in Default" examines factors influencing and influenced by loan defaults among students at Valencia College in Orlando, Florida. The findings demonstrate that loan defaults and their harsh penalties are strongly associated with poorer academic persistence and completion. The paper…

In 2014, ACCT and TICAS partnered to examine student loan default at nine community colleges and explore administrative practices aimed at addressing students' default risks. At each college, we analyzed cohort default rate data and uncovered notable trends and populations at higher risk, identified default-reduction strategies the college was…

The Higher Education Act of 1965 (HEA; P.L. 89-329, as amended) authorizes the operation of three federal student loan programs: the William D. Ford Federal Direct Loan (Direct Loan) program, the Federal Family Education Loan (FFEL) program, and the Federal Perkins Loan program. While new loans are authorized to be made only through the Direct…

The cohort default rate (CDR) has worked to reduce students' risk of default, but decades of experience have also revealed weaknesses that policymakers must tackle. "Driving Down Default" outlines key priorities for strengthening the CDR to further reduce student loan default, including specific recommendations to protect against…

National Association of Student Financial Aid Administrators' (NASFAA's) National Student Aid Profile is an annual publication designed to give a high-level overview of the federal student financial aid programs that provide funding to millions of students each year. This profile includes an overview of: (1) The Federal Pell Grant Program; (2) The…

National Association of Student Financial Aid Administrators' (NASFAA's) National Student Aid Profile is an annual publication designed to give a high-level overview of the federal student financial aid programs that provide funding to millions of students each year. This profile includes an overview of: (1) The Federal Pell Grant Program; (2) The…

This new TICAS (The Institute for College Access & Success) brief explores how the punitive consequences of defaulting on student debt can perversely make it harder for struggling borrowers to return to school and regain their financial footing, even though graduating from college will make it easier to repay their loans. The brief includes…

"Casualties of College Debt" uses the latest federal data on delinquency and default to better understand who student loan defaulters are, explores key themes of who defaults and why that emerged across over 20 in-depth conversations with a diverse group of experts, and lifts up the lived experience of default through voices of borrowers…

This report analyzes data from the U.S. Department of Education on the outcomes of New York's federal student loan borrowers who entered repayment in 2012, covering the period from 2012 to 2016. This data brief--the first comprehensive analysis of five-year student loan outcomes in New York--reveals that the student loan default rate in New York…

Student loan borrowing for higher education has emerged as a top policy concern. Policy makers at the institutional, state, and federal levels have pursued a variety of strategies to inform students about loan origination processes and how much a student has cumulatively borrowed, and to provide students with greater access to loan counseling. We…

In this study, we examine whether institutional-level characteristics, student demographics, and state conditions are associated with student loan repayment rates and cohort-level loan default rates. We separately explore these characteristics for each of four higher education sectors: public 2-year colleges, for-profit colleges, public 4-year…

Nearly 43 million college student borrowers across the United States owe more than $1.56 trillion in outstanding federal student loans. The number of student borrowers in the country has increased by 1.3 million, or 3.1 percent, over the past five years, while the amount of outstanding student debt in the country has increased by a whopping $…