Auburn Research on Educational Debt Economic Challenges Facing - - PowerPoint PPT Presentation
Auburn Research on Educational Debt Economic Challenges Facing Future Ministers April 7, 2014 Anthony Ruger, Auburn Theological Seminary aruger@auburnseminary.org Outline Levels of debt Distribution of debt Among schools Among
Economic Challenges Facing Future Ministers April 7, 2014
Anthony Ruger, Auburn Theological Seminary aruger@auburnseminary.org
Levels of debt Distribution of debt
Among schools Among students
Graduate testimony Thinking about what to do
Students Schools
A new wrinkle
$1,978 $5,967 $6,357 $13,518 $7,807 $17,949 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 All Borrowers 1991 2001 2011
Preliminary - Not for Citation
Preliminary - Not for Citation
$3,397 $10,017 $11,387 $23,435 $18,482 $32,488 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 All Borrowers only 1991 2001 2011
Preliminary - Not for Citation
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000
Preliminary - Not for Citation
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No debt 36% $1 to $10K 8% $10K to $20K 10% $20K to $30K 11% $30K to $40K 9% $40K to $50K 7% $50K to $60K 6% $60K to $70K 5% $70K to $80K 3% $80K and up 5%
Preliminary - Not for Citation
8
No debt 43% $1 to $10K 7% $10K to $20K 13% $20K to $30K 11% $30K to $40K 9% $40K to $50K 6% $50K to $60K 5% $60K and up 6%
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000
Preliminary - Not for Citation
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000
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$- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 Undergraduate Debt Theological Debt
Preliminary - Not for Citation
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000
Preliminary - Not for Citation
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$- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Undergrad Other grad Theological debt
Preliminary - Not for Citation
Entering classes After one year After two or more years if still in school Graduating classes
0% 20% 40% 60% 80% 100% 120% Strongly agree Agree Strongly disagree Disagree I now wish I had borrowed less. I now wish I had borrowed more.
0% 10% 20% 30% 40% 50% 60% Strongly agree Agree Strongly disagree Disagree
0% 10% 20% 30% 40% 50% 60% Disagree Strongly disagree Agree Strongly agree
0% 10% 20% 30% 40% 50% 60% 70% Strongly agree Agree Strongly disagree Disagree
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Strongly agree Agree Strongly disagree Disagree Administration or faculty discouraged borrowing Borrowing was common among students
Excellent, 17% Adequate, 41% Inadequate, 13% No guidance, 30% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
I.
II.
Convenience Borrower Consumer/Lifestyle Maintenance
“Default” Borrower Not oriented to church occupations Multiply challenged
Rational Planner/Entrepreneurial Fundraiser
Standard Repayment (10 years @ 6.8%) vs. Income Based Repayment (IBR) and Pay As You Earn (PAYE)
$576 $576 $291 $68 $194 $45 $- $100 $200 $300 $400 $500 $600 $700 Single, with $40K in Discretionary Income Family of four with $40K in Discretionary Income Monthly payment Standard IBR PAYE
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Do income-based repayment programs provide an
Do income-based repayment programs give schools an
Undergraduate debt is rising rapidly. Students increasingly rely on debt for expenses while in
Ordinary repayment schedules are difficult to meet on
Income-based repayment arrangements (e.g., Income
Debt provides an incentive to move to higher paying
Part-time tracks may retain students with lower levels of
Discouraging borrowing may discourage full-time
Screening, education, and counseling can reduce the