1. Data Highlight: Student Debt
CAAP Meeting
December 16, 2015

2. Statewide Goal: Debt ÷ Wage Ratio = 60%
60X30TX Goal: By 2030, undergraduate student loan debt will not exceed 60 percent of first year wages for graduates of Texas public institutions
Statewide Goal:
Debt ÷ Wage Ratio = 60%

3. Breaking out debt and wage increases understanding of the goal and informs strategies
This presentation analyzes Debt by degree level, completion status, sector, and student demographic characteristics Then explores Wage information by degree area and level And concludes with Data breakouts on the Debt to Wage Ratio

4. Bachelor’s degree recipients have about twice as much debt as those earning associates
Students With Debt
Average Loan Amount
Bachelor's
63%
$ 30,181
Associates
36%
$ 15,003
Certificates
30%
$ 12,482
2014 Completers

5. At two-year institutions, older students borrow more often and at higher rates than younger students
2014 Completers

6. At public universities, younger students borrow higher amounts; older students are more likely to borrow.
2014 Completers

7. Loan averages vary by ethnicity and gender
Students With Debt
Average Loan Amount
African American
80%
$ 31,198
White
50%
$ 26,892
Hispanic
58%
$ 21,277
Male
52%
$ 26,013
Female
$ 25,015
2014 completers

8. Students who don’t graduate have less debt but also less earning potential and higher default rates
Completion Status
Students With Debt
Average Loan Amount
Non-Completers
35.2%
$ 15,326
Completers
54.3%
$ 25,012
*Fall 2008 first-time in college students tracked through 2014

9. Students borrow at higher levels for graduate degrees

10. First-year wages differ by level
Wages for 2013 Graduates

11. And also vary by program area
Wages for 2013 Graduates

12. The 60x30TX Student Debt Goal is a Statewide average
Undergraduates who have completed a bachelor’s, associate, or certificate
Only completers who have debt and wages are included
The ratio is calculated for each student and then all of the ratios are lined up and the median is chosen
The 60% Goal for the state is not intended for every sector and degree type

13. Students earning associate degrees and certificates have a lower debt to first-year wages ratio
2013 Graduates

14. Debt to first-year wage varies by discipline

15. The debt to wage ratio also varies by student characteristics
Ratio by Race/Ethnicity
Ratio by Gender

16. What can we learn from these data?
The debt to wage ratio depends on several factors including student, state, and institutional elements
Examining data breakouts at different levels highlights the importance of the relationship between debt and wages
Student choices
Balance of resources
Value of degree
Questioning differences across groups can inform strategies and help target efforts, for example
Why do African Americans borrow the most?
Why do a higher percentage of females borrow?
More exploration on the impact of student pathways on the ratio is needed