To provide a more complete picture, our report focuses on those students who borrow and those who work, showing the annual and cumulative amounts of their borrowing and the number of hours worked per week while they were enrolled. In general, this was true for both undergraduates and graduate and professional students. The average amount borrowed by undergraduates completing their program (excluding those who had not borrowed) rose from about $7,800 to about $9,700 over the 1992-93 to 1995-96 period, after adjusting for inflation. Among bachelor’s degree recipients, the portion of students who had borrowed $20,000 or more for the 1992-93 through 1995-96 time period rose from about 9 percent to about 19 percent of graduating seniors who had borrowed; see table 2. The most substantial increases in the number of graduating students who borrowed occurred at public schools. At 4-year public schools, the percentage of graduating seniors who borrowed in 1 or more years rose from 42 percent in 1992-93 to 60 percent in 1995-96 (see table 3.) This increase eliminated the earlier difference between public and private 4-year schools in the percentage of students borrowing in 1 or more years—public school students “caught up” to private school students in terms of the percentage of the group that borrowed. Students in professional programs were the most likely to borrow and had the highest levels of debt. Postsecondary Students Typically Worked While Enrolled

Changes in students’ employment have been less pronounced than changes in borrowing. Compared with 1992-93, the percentage of full-time undergraduate students who worked while attending school rose slightly, while the percentage of graduate and professional students who worked generally declined. The percentage of full-time students who worked rose in all three program categories—certificate or award, associate degree, and bachelor’s degree. Overall, during 1995-96 more than two-thirds of full-time undergraduates worked while enrolled. Many of these students held jobs in their field of study, such as teaching or research assistance. About 80 percent of full-time doctoral students who worked while enrolled said they held positions directly related to their studies, compared with about 63 percent of students in master’s programs and about two-thirds of students in professional programs. Work and Borrowing Patterns Varied Considerably for Some Groups

To gain a better understanding of student work and borrowing patterns during school year 1995-96, we analyzed amounts borrowed and hours worked by several factors, including type of school, cost of attendance, year in school, dependency status, gender, family income, race/ethnicity, cost of attendance, and expected family contribution. Little Information Available on Parental Debt for Children’s Education

In contrast with the substantial amount of information about students’ own borrowing experiences, little information is available about the amounts that parents borrow to pay for their children’s postsecondary education. Information From the Department of Education

The best available data are in the Department of Education’s NPSAS, which we used as the basis for information on student borrowing and work patterns. Degree or other credential received 1995-96 dollars) $5,171 $4,758 - $5,584 Percentage of graduates borrowing in 1 or more years a total of $20,000 or more 15.7 - 22.2 dollars)
Table II.5: Students in Graduate and Professional Programs Who Borrowed, Amount Borrowed, and Percentage With $50,000 or More Debt, School Years 1992-93 and 1995-96 undergraduate, graduate, or recipients who borrowed in 1 or a total of $50,000 or more for 1995-96 dollars)

Analyses of Undergraduate Work and Borrowing Patterns

Although our work focused primarily on the extent to which borrowing and working by undergraduates varied by each of several factors (type of school and year in school, for example), we sought more information about the extent to which these factors were predictive. However, the portion of dependent students who borrowed increased at all family income levels, and at the highest level ($100,000 and above), it nearly doubled from 16.3 percent to 32.6 percent.
Why GAO Did This Study

Pursuant to a congressional request, GAO provided information on: (1) the changes that have occurred in recent years in the percentage of undergraduate and graduate/professional students who borrow and in the cumulative amount of their borrowing; (2) the changes that have occurred in the percentage of undergraduate and graduate/professional students who work and the number of hours they work; (3) how undergraduate borrowing and work patterns differ by type of school, year in school, dependency status, family income, and race/ ethnicity; and (4) information concerning the amounts of education debt parents incur. GAO based its review in large part on an analysis of data collected by the Department of Education as part of the National Postsecondary Student Aid Study.

What GAO Found

GAO noted that: (1) over the past several years, students have turned increasingly to borrowing to cope with rising education costs; (2) at the undergraduate level, the percentage of postsecondary students who had borrowed by the time they completed their programs (received a bachelor's degree, associate degree, or award or certificate) increased from 41 percent in 1992-93 to 52 percent in 1995-96; (3) the average amount of debt per student increased from about $7,800 to about $9,700 in constant 1995-96 dollars; (4) for graduating seniors (recipients of bachelor's degrees) and who had borrowed, the average rose from about $10,100 to about $13,300; (5) the portion of these graduates with $20,000 or more of student debt grew from 9 percent to 19 percent during the period; (6) students attending 4-year public institutions showed the largest increase in the number of borrowers; (7) sixty percent of seniors graduating from these schools in 1995-96 borrowed at some point in their program, up from 42 percent in 1992-93 and about even with the percentage of borrowers at private 4-year schools; (8) students at 2-year public institutions borrowed least often and in lesser amounts; (9) at the graduate and professional levels, the percentage of borrowers and the level of debt generally increased; (10) higher borrowing levels were especially pronounced at professional schools, where average debt among borrowers completing their programs climbed from about $45,000 in 1992-93 to nearly $60,000 in 1995-96; (11) more full-time undergraduates worked while attending school in 1995-96 than in 1992-93; (12) more than two-thirds of full-time undergraduate students held jobs during 1995-96, working an average of 23 hours a week while enrolled; (13) at graduate and professional schools, the percentage of full-time students who worked changed little over the same period; (14) about two-thirds of master's and doctoral students worked, usually in part-time jobs directly related to their field of study; (15) at professional schools, less than half worked while enrolled; (16) some variations in borrowing and work patterns can also be seen on the basis of the cost of attendance, dependency status, family income, and gender; (17) however, most characteristics are not very strong predictors of how much undergraduates were likely to borrow or work; (18) little information is available about amounts of debt parents accumulate in order to pay for their children's postsecondary education; and (19) in general, household debt for education remains a small share of household debt.