This report on student indebtedness is based primarily on a current study which is measuring the average Stafford loan balance facing students, as well as indicators of payment stress. The study is based on data on about 325,000 loans from the USA Group's entire loan servicing portfolio, which includes both subsidized and unsubsidized Stafford loans issued under the Federal Family Education Loan Program. The study examined debt levels for four borrower groups categorized by school type: four- and five-year institutions, graduate and professional schools, two- or three-year colleges, and proprietary vocational schools. Findings are detailed for the following: (1) average Stafford balances, principal only; (2) average cumulative Stafford indebtedness, including principal and accrued interest; (3) indebtedness levels, borrower distribution; (4) data suggesting that the debt burden growth is beginning to moderate; (5) minimum annual income needed to support post-school indebtedness; and (6) development of payment stress indicators, including repayment plan selection rates, repayment status and delinquency rates. Conclusions indicate that students are going more deeply into debt to finance their postsecondary education, with graduate students borrowing the most under the Stafford loan program. Detailed tables are appended. (Contains 31 references.) (DB)