Crisis?

1 min read

Is student loan debt really a crisis?

Research by the New York Federal Reserve Bank found that 35% of students with less than $5,000 in debt defaulted within six years, twice the rate of students with more than $100,000 in debt.

Additionally, these students with low debt amounts and low earnings are disproportionately likely to be dropouts. Sixty-three percent of students who started college in 2003-04 and defaulted on their loans by 2009 were college dropouts, while students with a bachelor’s or associate degree were only 4% of defaults.