Student Debt Declines For Third Straight Year

“Might the cliche of the forever-indebted college student someday become a fable?”University Business asks.

“According to a new College Board report, total college student debt for 2013-14 is down by $8.7 billion from the previous school year, with students having borrowed $106 billion. This is the third consecutive year American student borrowing has decreased.

There may be several factors behind the drop, says Megan McClean, NASFAA’s managing director of policy and federal relations. ‘What we’re seeing is recovery from economic downturn,’ McClean says.

‘Families and students are getting back on their feet and borrowing less. States and institutions are re-upping their investments a bit. Grant dollars are also a big contributor.’ …

The drop in debt could lead to increased enrollment, Ma and McClean say.

‘When we paint the need to borrow for higher ed as a crisis, there is a damaging effect for students thinking about going to school,’ says McClean. ‘The more we see these numbers level off and the more we share that, this will help remove the stigma around borrowing and pursuing higher education.'”