Federal Student Loan Debt Policy Issues
Considerations for Congress
After years of increasing growth in the number of federal student loan borrowers, average annual amounts borrowed and average cumulative debt owed appear to be moderating, and among some measures, even decreasing. Generally, though, more student loan dollars continue to be disbursed than are repaid, resulting in an expanding federal student loan portfolio. Annual Borrowing Title IV of the Higher Education Act of 1965 (HEA) authorizes the primary federal student loan programs. From Academic Year (AY) 1995-1996 to AY2011-2012, average annual Title IV loan amounts borrowed by undergraduate students increased from $3,800 to $6,500 (71%), while undergraduate borrower counts increased…
