Have Student Debt Repayment Rates Bottomed?

Student repayment rates continues to decline, although the trend seems to be slowing, according to the most recent College Scorecard data. This data measures repayment rates at 1,3,5, and 7 years. Repayment rates and default rates are very different. Repayment rates are the percentage of students who have made progress in paying them down (i.e. have paid down at least $1 in the initial balance of their loans) after entering repayment. Default rates measure the worst-case scenario for repayment outcomes and can be manipulated through deferments and forbearances. 

 

To create this composite picture, we took the average repayment rate by institution and multiplied it by the number of students being measured to come up with an institutional average and then aggregated the data by year. 

 

Three-Year Repayment Rates

 

 Five-Year Repayment Rates

Seven-Year Repayment Rates

The One-Year Repayment Rates were not updated and the last year we have is 2014. The Three-Year Repayment Rate has rebounded from 30.45% to 31.03% in 2016. The Five-Year Repayment Rate has declined from 38.55% to 36.42% and the Seven-Year Repayment Rate has declined from 53.23% to 46.28%. The trending graphs are shown below. Obviously the time horizon is the key. Those entering into repayment during the Great Recession continue to struggle to repay their debts whereas those entering into debt outside of the Great Recession seem to be doing better. On the other hand, we may be so accustomed to poor performance that we still accept that two out of three students do not pay their student debts down when they are due, even five years into the repayment cycle.

 

Share This Story

Similar Posts

  • Top 10 Projected Occupations in 2026

    Healthcare workers dominate the top 10 list for projected job growth. Nine of the top 10 jobs are projected to have greater than 30% growth over the coming 10 years. Using the new Degree-to-Jobs Interactive, we sorted the projections table by projected growth and isolated the top 10 jobs as shown…

  • BLS Releases New 10-Year Employment Projections

    Last month, the Bureau of Labor Statistics released its 10-year employment projection data. This data is updated every other year. The new data shows a projected increase over the next decade of 7.4% which is a noticeable increase over the previous 6.5% 10-year projections in 2014. These projections are not…

  • COVID-19 Dashboard with NYT Data

    Analyze COVID-19 Cases by National, State and County Level It is important for today’s business leaders to consider the impact of COVID-19 when making decisions and allocating resources. The accuracy of COVID-19 data reported by news sources and online publications goes beyond the numbers themselves, the interpretation of the statistics…

  • Visualizing Student Debt and Earnings

    Leveraging Scatterplots to Analyze the New College Scorecard Data There has always been a symbiotic relationship between student debt and student earnings. As student debt has creeped up in recent years, there has also been a data gap with post-graduation earnings. The most recent College Scorecard data is a first…

  • Are Outpatient Imaging Quality Measures Effective?

    CMS began developing measures evaluating imaging efficiency back in 2007. These performance measures have been distributed as part of Hospital Compare for the past four years. Lower percentages suggest more efficient use of medical imaging. The purpose of reporting these measures is to reduce unnecessary exposure to contrast materials and/or…

  • Black Disparities in Premature Death

    County Health Rankings has always used Premature Death as a measure in deriving its ranking formula. Years of Potential Life Lost Before Age 75 (or YPLL) counts as 50% of the Health Outcomes score. Every death occurring before the age of 75 contributes to the total number of years of potential…