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STUDENT DEBT AND HIGHER EDUCATION FINANCING:
A PUBLIC FINANCE PERSPECTIVE

Remarks before NACUBO
February 5, 2015

Jamie McAndrews
Director of Research

Chart 1: Non-mortgage balances
Billions of Dollars
1200
1100

Billions of Dollars
1200
HELOC

Auto Loan

Student Loan

Credit Card

1100

1000

1000

900

900

800

800

700

700

600

600

500

500

400

400

300

300

200

200

100

100

0

Source: New York Fed Consumer Credit Panel / Equifax

0

Chart 2: Percent Change in Public Institution Net Tuition per Pupil
7

7

6

6

5

5

Bottom third of States
in growth of state
funding per pupil

4

4

3

3

2

2

All other states

1

1

0

0
2007

-1
Source: State Higher Education Officers

2008

2009

2010
-1

Chart 3: Average Tuition at For-Profits Is Higher Than at Comparable Publics

$16,000

Gross Tuition

$14,000

For-Profit 2 Years

$12,000
$10,000

Public <2 Years

$8,000

For-Profit <2 Years
$6,000

Public 2 Years

$4,000
$2,000
$0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Source: Integrated Postsecondary Education Data System (IPEDS).
Note: Chart depicts average tuition and fees of largest program for <2 year institutions, and average in-state tuition for 2-year institutions.

2012
4

Chart 4: For-Profit Enrollees More Likely to Take Out Student Loans
to Finance Education

70%

Percent of Students Receiving Subsidized Direct Loans

60%

50%

For-Profit

40%

30%

20%

Public

10%

0%
2000

2001

2002

2003

Source: National Student Loan Data System (NSLDS) .

2004

2005

2006

2007

2008

2009

2010

2011

2012
5

Chart 5: 90+ Day Delinquency Rates
Proportion of Total Borrowers
90+ Days Delinquent
40%

Proportion of Borrowers in
Repayment 90+ Days Delinquent
40%

2004

2008

2012

2004

35%

35%

30%

30%

25%

25%

20%

20%

15%

15%

10%

10%

5%

5%

0%

0%

age<30

age 30-49

age 50+

Source: New York Fed Consumer Credit Panel / Equifax

all ages

age<30

2008

age 30-49

2012

age 50+

all ages

Chart 6: Quarterly transition rate of borrowers in repayment
from current to delinquent
9%

9%

8%

8%

7%

7%

6%

6%

5%

5%

4%

4%

3%

3%

2%

2%

1%

1%

0%

0%
2005

2006

2007

Source: New York Fed Consumer Credit Panel / Equifax

2008

2009

2010

2011

2012

Chart 7: Proportion with Home-Secured Debt at Age 30
Percent

36

34

32

No student loan
ages 27-30

30

Have student loan
ages 27-30

28

26

24

22

20

18
2003

2004

2005

2006

Source: FRBNY Consumer Credit Panel/Equifax

2007

2008

2009

2010

2011

2012

2013

2014