In Fiscal Year 2011, Minnesota undergraduates received $1.7 billion from Federal student loan programs. Search Financial Aid Awarded survey data to find amounts and types of federal loans and all other types of financial aid received by undergraduates attending Minnesota postsecondary institutions.
Cohort default rates for federal loans are prepared by the U.S. Department of Education.
Trends in Education Debt
Because students are borrowing at the highest rates ever observed1, concerns are growing about the capacity of students and college graduates to repay their loans. The Minnesota Office of Higher Education monitors debt trends and evaluates state financial aid policies. Here are some statistics:
- From 2006 to 2011, the increase in borrowing among public bachelor's degree recipients was 2.1% greater than the rate of inflation2.
- Minnesota's default rate on student loans is below average:
- The national three-year default rate on Federal Stafford loans was 14.7% in 2010.
- The default rate in Minnesota for the same period was 11%.
Default Rates at Minnesota Institutions
- For the class of 2011, 71 percent of those receiving bachelor's degrees from public and private not-for-profit universities in Minnesota had student loans, and the average amount borrowed was $29,800. The monthly payment for those paying the loans on a 10-year schedule at 6.8 % interest was $342. In 2010, 70 percent of associates degree recipients in Minnesota had student loans and borrowed an average of $17,900.
1Dillon, E., Carey, K., & Education Sector. (2009). Drowning in Debt: The Emerging Student Loan Crisis. Charts You Can Trust. Education Sector.